Businesses want to expand by their very nature, but they are not always ready to do so. It can be hard knowing whether or not your business is in the right place to consider expansion. If you have started to consider it, it is likely that you at least have some of the basics in place which you will need for a successful expansion. However, it is a good idea to keep your wits about you, as you can never be quite sure about how it will turn out. In this post, we will take a look at some of the things you should be particularly careful of if you are thinking of opening a second location.
1. Realistic Budgets
First of all, it is obviously important to ensure that you have enough money to open your second location. There might well be more costs involved in this process than you initially assume. At first, you have the obvious large upfront costs, such as the price of building (if relevant) and stocking your new location. But you also need to take on board the ongoing costs which are going to apply, such as utilities and tax and so on. Sit down and work it all out with your finance team, and make sure you don’t miss a single detail. You need to have one hundred percent confidence that you have the capital to pull it off, otherwise it just isn’t worth the risk.
2. Careful Construction
If you are building your new location, rather than moving into an existing property, you have a few specific implications which need considering. For a start, you will need to make sure that you have the right people on board; commercial construction can be a headache, and it is always worth getting the professional help that you need during this process. It’s also important that you take your time, as a rushed construction will only negatively impact the business later on. As long as you take care, however, opening up a brand new building can be exciting – and a big boost for your brand.
3. Solid Base
If you are not strong enough in your first and primary location, then you might well struggle once you open up a second one. You need to be confident that your business will survive on the whole, even if the second location tanks. If you are not absolutely certain of that, you might want to wait a little while. For something of this magnitude, timing is everything, so make sure you choose it well. If you get the timing wrong, it can affect your business hugely for many years to come. If you get it right, it could mean that your business goes on to achieve wonderful things indeed.
Done right, opening a second location can be one of the best things you ever do for your business. But you do need to make sure that you are sensible and keep your wits about you throughout the process.