Opening a second location means you want to expand your business. It’s an exciting time and can be a great way to tap into all sorts of new potential. But it can also be a great failure, taking the wind out of your sail. What should folks do to determine if adding a second location is a go or a no go? Here are 3 suggestions:
1. Do you have the cash and patience to support a second location while it ramps up?
- It will take time to generate sales. Put a conservative prediction in place to determine how much cash you will need.
- Develop other goals besides sales to help move things forward, and maintain strong moral.
2. Where would be the best location?
- Look at 3 potential locations and gather information on each. Such as; competition in the area, sales potential, new hires or relocation of existing personnel, total costs, ease of managing.
3. How will this second location have synergy with the first location?
- What’s the strength of your first location and what will be needed in the second location?
- How will it be managed?
If you’re in the position to seriously consider adding a second location, do your research and take as much of the guesswork out of it.