Most business owners start out with visions of a multi-location, possibly multi concept business, but how do you know when it’s time? To open a second location is no minor undertaking and can often be more stressful than opening your 1st location. Below are some questions to consider, to help you decide whether or not to take the leap.
Can your Business Run Without you?
During the summer we offered a two-part blog series about how to fire yourself, which essentially discusses the importance of making yourself replaceable. If you do not have the ability to “fire yourself” you do not have the ability to successfully open a second location. Why you ask? Because you can only be dedicated to one of the locations at anyone one time, which means that other people are going to have to carry out your duties. If you can’t live with that, it probably isn’t advisable to open a second location, but if you can then you’re on the right track.
Is your Current Business Profitable?
Is your current business making you the money that is expected? If not, consider that you will have to take on additional salaries and costs at your new location to fill your role. How much would that person make on the open market, and can you afford to pay that person? If you had to pay yourself a market salary how would your business financials look? If you already pay yourself a salary and still turn a healthy profit that’s a great sign!
Do you have the Financial Means?
Do you have the finances available to make this happen without putting significant strain on your 1st location? Remember back to when you started your 1st location and the fact that it probably cost more money and took more effort than you originally estimated. Although you have learned from your own mistakes, the 2nd location is still going to have its own pitfalls and very well may cost more than expected. Carefully consider whether you are in a financial position to handle that.
Have you Expanded your Current Location?
Inquiring about opening a new location is typically the product of an overflow of customer demand that can’t be accommodated by your single location. However, before you make that commitment consider expanding your current location. This can be a much less costly and less difficult avenue if the opportunity exists. Note: You may also look at an update in technology to handle more customers with the current resources.
If after going through this list carefully, you feel even more sure about your need to open a second location then we wish you the best of luck. And of course, we would love to handle your payment processing for both locations! Please check out our previous blogs and information as well. Thank you.
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