Are you looking to build upon the success of your business’s original location? Expanding your business by opening a second location can bring additional profits, new customers, and extra prestige. However, these benefits come with additional risks.
Take some time to analyze a few key things before considering opening your second location.
Are There Better Alternatives?
Has your business truly outgrown its first location? There are less expensive alternatives for businesses that haven’t truly maxed out their current markets. These include things like:
- Increasing staff
- Opening an online store
- Diversifying inventory
- Targeting new audiences
If you’ve already done these things, then maybe it is time to consider opening a second location.
Will Your First Location Function as Normal?
Your first location will provide the revenue, the clientele, and blueprint for your new location; so it’s important that your first location is excelling before deciding to expand. In addition to your first location being successful in those areas, it also should be able to operate without you constantly being present. If you’re crucial to your first location’s daily operations or clientele, it probably isn’t the time to expand your business.
How Will You Fund a Second Store?
Even though you can use funds generated from your first location to pay for a second location, you want to avoid taking too much money from your first location. If you do draw too much money from your first location, you’re putting your entire business at risk. To fund another location, consider going through banks and investors as you would for a first location.
Do You Have the Perfect Place?
One thing you never want to do is drive business away from your first location. The goal is expanding is doubling your profits, and that won’t happen if your two locations overlap. In addition to not having your two stores overlap, you also never want to choose a location that is destined for failure. You may be eager to open a second location and feel fine with compromising, but in the long run, this can cause your business to fail. Take the time to talk to a broker so that they can find the best location for you.
Ready to Expand?
If you’ve considered these things, and believe it’s time to expand to a second location, Tomarchio Enterprises will help you through the process. Our team of professional brokers will help you find the perfect space for your expanding business. Whether you’re looking for a commercial lease in Finksburg, MD or in Seaford, DE, we can help you find the perfect space for your business. Call or contact us today to get started.