Maybe business is thriving, and you’ve been thinking “hmmm, maybe it’s time for a second location…”. While expanding is awesome, let’s go through the things you need in place to expand.
-
How is business?
This seems like a no-brainer but your business needs to be healthy. You’ll need a large amount of sales, lower cost-per-lead, strong cash flow, capital in the bank, etc. If you’ve had to turn away customers due to a lack of space or inventory, it may be time to open another location.
Also, will your current business thrive if you step away to handle the opening of the second location?
-
Systems
Back to our last question, a system needs to be in place in order for your first location to not skip a beat while you open the second. Do you have managers you trust? Do you have a solid system for inventory and marketing? Before opening the second location, ensure that everything will be smooth sailing while you step away to work on project number two.
-
Capital
This is another no brainer but oddly enough having capital is something business owners overlook. Location number one will need to support location number two while it grows. Location A will be providing the capital for marketing, inventory, rental space, staff, etc. for location B. Overextending the finances of location A is what leads to a lot of businesses shutting down so be sure the funds are available.
-
Research the area
I’ve seen Marcus Lemonis’ show too much too. In one episode, a snowboard shop opened a second location and the shop was failing miserably and costing them a ton of money. The problem? They didn’t do the research. They were so excited about a second location that they skipped the market research. If location A and B are too close they could cannibalize each other, and if they’re too far apart you could spend a fortune. It’s all about finding the sweet spot.
While we can’t find that sweet spot for you, or put your systems in place, we can provide the capital you need to get going on your second location. Click the apply button below to get started today! You could have funding is as little as 48 hours.
