Have you been thinking about expanding your business by opening a second location? Whether you are a restaurant, a retail store, or any other kind of service or product based business, jump into a second location only after you’ve read about these tips and suggestions! It’s best to make sure that you’re moving in the right direction. Ask yourself these questions to get an idea of whether or not opening a second location is right for your business.
What is the purpose of opening a second location?
There is no doubting that you, like any other business, wants to expand and increase profit, but knowing exactly why you want a second location rather than any other kind of business expansion or upgrade will help you to determine whether or not it’s a good choice. Opening a second location can be beneficial, but it can also be detrimental to your business if you’re not fully prepared for it.
How is the original location doing?
Determining the status of your original location can help you to decide whether or not it’s time to open a second location. Study what has been working with your original store and what its flaws are. If you are barely scraping by with the first location, launching a second store may be a huge risk.
How are you planning to fund the second location?
It’s encouraged to set aside a large chunk of income as savings to be used on not only funding the second store, but also as a backup fund if the store does not do as well as you anticipate. If you are close to meeting that threshold, you can also consider an infusion of cash to get a jump start on the second location. Smart Business Funding offers business loans to help growing companies grow even faster and to allow them to capitalize on rare market opportunities.
Will the second location (and others) work in tandem with the first?
Make sure that your original location is in top condition before opening a second location. Perfect your systems and practices so that they can be replicated almost identically at the second store. Don’t use different management, inventory, accounting, and HR practices. Keep them the same (at least to start out) and you’ll make the transition much easier after opening the doors at the second location.
What was the key to your success?
Once you’ve answered everything above, take some time to think about what made your first location the success that it is today. Was it the employees? The merchandise? Your services? The community of customers? Your website? Social media? Dig deep and learn what key elements contributed to the success of your company and then build upon them as you expand.
Looking to expand into a second location? Let us know at Smart Business Funding and we will help you to determine whether or not it’s a wise choice. We can close any funding gaps that you have so that you can focus on building a successful secondary location. We don’t want you to miss out on any great opportunities in your industry and market!