If your original bricks and mortar business has reached the point of success where you’re ready to look at a second location – congrats! But before you jump in feet-first, there are some important factors to consider when opening a second location. You can avoid common mistakes by being prepared. Here’s how.
1. Get a strong handle on cash flow
Getting your cash flow right is critical to the success of any business. Without a clear picture of projected revenue and expenses, it’s going to be almost impossible to manage risks and cover the expenses associated with opening a second premises. Download our free CashFlow Plan template to make forecasting incoming revenue and outgoing expenses simpler. Also, consider your options for securing additional finance. Having an approved small business loan up your sleeve could give peace of mind and help you navigate any cash flow challenges that occur while you open a second location.
2. Maintain existing high standards
Much like welcoming a second child into the family, opening a second location comes with a range of time-consuming challenges. It will be important not to lose sight of the overall culture and health of your first premises. Before opening a second location, make sure you have the right people and processes in place to keep your customers happy while your attention is divided.
3. Understand what makes the second location different
Don’t assume that your existing model will perform to the same standard at a new location. All too often, small business owners will open in a second location and replicate the success formula they discovered at their first, only to find it doesn’t work. The main problem here is that they have failed to research the nuances of their new location. Understand what makes your second location different; what draws people to the area, who is your foot traffic, what existing services and businesses are nearby. Now consider how your business can position itself for success in this new environment.
4. Promote, promote, promote
Put in place a solid marketing plan to communicate the opening of your new premises. Break down who needs to know, what information they’ll want to know, how you’ll tell them and when you’ll tell them. Consider what ways you can leverage success at your original premises. Don’t be afraid to get creative and encourage people to get as excited as you are about this second opening!
Do you need extra capital to take advantage of a business opportunity, or purchase the inventory you need for growth? Consider a small business loan. Apply online in minutes for a fast decision.