As a business owner, you may have your sight set on opening additional locations in your future plans. But how do you make sure you’re really ready to make the leap and start the process for opening your next location? Ask yourself the following questions and get a plan in place before you make the decision to pull the trigger.
Are your current locations stable?
Before you venture out and open another location, you need to make sure your current stores are pulling their weight. Opening additional locations will take a lot of your attention, so you need to make sure they are functioning in a profitable manner. If you find you have a store that’s struggling to stay above water, you might want to put your efforts into revamping that store rather than opening a new one.
Do you have funds available for this venture?
It’s a mistake to think the cash flow from your current location can fund your second location. You want to make sure you keep the plans for financing a new venture separate from your current store. You don’t want your new location to be sucking in all of the profits from your older, successful stores.
Are you running out of room?
If you find yourself bursting at the seams and failing to keep up with demand, you may want to consider looking into a second location. But if you find that demand in new locations aren’t as high as they are in your current location, you may want to consider moving your inventory to a new space, or looking for a larger unit for your store.
Do you have the right people to take on more responsibility?
If you’re venturing out to open a new location, you need to make sure you have staff at your current stores that you trust to continue running them the way you want. If your staff lacks the ability to take on the additional responsibilities, you may want to consider building a staff that can better assist you in your venture. Adding the right people to the payroll can even improve the overall performance of your stores, giving you more incentive to open a new location!
How will you bring your current culture to your new store?
Retailing today requires more than just inventory, it needs a great experience for shoppers. If you have a successful business, chances are you’ve provided a great experience for your customers. How will you make sure your next venture offers the same culture? Making sure you can bring an equally successful culture to your new store will be an important part of planning a new store.
While answering these questions will help you evaluate if you’re ready to become a multi-store business, you need to put the effort in to make a business plan. Opening a successful new location will require a detailed plan for how you’ll fund, run, and market your new store. Interested in moving forward? Download our Guide to Multi-Store Management for more information on how to effectively run multiple stores.
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