Expanding Your Billboard Territory: Essential Considerations Across State Lines
When you manage billboards, your territory is often quite expansive—sometimes stretching up to 4 or 5 hours in every direction from your home base. This wide footprint means that, in many cases, you'll be working across multiple states. In regions like Missouri, for example, your operational area could cover six different states. But how complex is it to handle business in more than one state?
Mastering State-Specific Outdoor Advertising Regulations
While the Highway Beautification Act provides a federal framework for outdoor advertising, each state has the authority to implement stricter regulations if they choose. This flexibility leads to variations, especially in areas such as billboard spacing and zoning, particularly for "unzoned commercial" designations. To ensure compliance, it's crucial to familiarize yourself with each state's specific rules. Fortunately, this isn't too daunting—you can usually acquire the state's handbook on outdoor advertising, which will serve as a helpful guide.
Securing Your Outdoor Advertising License
Before you can put up your first billboard in a new state, you'll need to get licensed. Most states make this an easy process: a simple form, a small fee, and you're good to go. In other states, the process might take a little longer, but it's rarely complicated. Keep in mind, though, that processing times can vary, so plan ahead. It's wise to allow several months to ensure you're licensed when the opportunity arises.
Navigating Real Estate Nuances
Real estate laws are largely uniform across the U.S., but there can be state-specific quirks to be aware of. For instance, Louisiana follows Napoleonic law—a legal system rooted in French tradition, which differs from the common law used in most other states. Other states may have particular requirements, such as exchanging cash to secure a lease, or prohibiting specific terms in ground leases. It's important to review state regulations before negotiating your first lease in any new area.
Adapting to State Banking Restrictions
Having a trusted banking relationship in one state doesn't automatically mean your bank will operate in another. Many financial institutions are regional or national, but some draw the line at state borders. Before you expand, ask your lender if they'll finance deals in other states. If not, it's time to establish new banking connections. Requirements like down payments, interest rates, and lease recording processes may differ from state to state, so understanding these early is essential.
Prioritizing Market Expansion
When expanding into new states, it's crucial to determine where to focus your efforts. Not every area within your 4 to 5-hour radius will be equally promising. Break your territory into quadrants and evaluate economic activity in each. One effective approach is to track the number of major retailers, such as Walmart or McDonald's, in a given area—their presence is often a reliable indicator of a robust economy. The key to success in the billboard industry is having a thriving base of advertisers, and that means choosing markets with strong commercial activity.
Conclusion
Expanding your billboard operations across state lines might seem intimidating at first, but with the right preparation, it's a manageable process. There's no need to shy away from attractive markets just because they happen to be in a neighboring state. With a strategic approach, you can broaden your reach and grow your billboard business without significant hurdles.