If you’re reading this post, chances are the prospect of a second location has already crossed your mind. Much like having a second child, opening a second location exponentially increases the workload from managing just one.
Are you ready to open a second location? If you meet the following conditions, it may be time to expand your business.
You’ve exhausted your available growth opportunities
A second location is not always your best path to growth, at least not at first. Consider other growth opportunities you could implement that are less intensive, like an online store or expanded hours and offerings. If you’ve exhausted all other avenues, it may be time for a second location.
Your first location is sound
Your first and second locations will each depend on the other for their success. Before you can open a second location, your first location needs to be performing well. Do you have the key personnel to keep things running while you focus on the second location? Does the first location have enough business that customers won’t leave for the second location? Make your life easier by getting the first location to a place where you don’t have to worry about it.
You’ve developed your brand
Think about national chains you’ve visited in different locations. Whether you’re in Texas or New York, places like Target and Starbucks generally look the same. As an extension of your business, your second location also reflects your brand. The design, logos and atmosphere should be compatible with your existing branding. Your second location doesn’t need to be an exact replica of the first, but it should help customers understand what your brand is.
You’re able to migrate systems
Any software or systems you use in your first location should be carried across to a second and any other locations. Your POS, accounting, time, inventory and any other systems should at least be the same at each place, if not interconnected. Get your business to a place where you have smooth systems that are easy to translate. Save yourself some stress and don’t reinvent the wheel.
You’re able to recreate the magic
Think about your first location: what made it a success? Was it the location, the space, the employees, the customers? Now that you know more about your target audience, you can use that information to replicate your success and create the kind of location they want. If you can spare it, have your best staff members help you open your restaurant to ensure consistency.
You’ve the secured funding
Opening a second (or third, or tenth) location requires strong planning and plenty of capital to ensure success. If you’re interested in exploring financial options for growing your business, contact Tenet Financial Group today. It may be that an SBA Loan is right for you. ROBS Funding or Unsecured Lines of Credit are also quick funding options that work well for many business and franchise owners. Contact Tenet Financial Group by email or call (888) 901-3335, Option 9 to speak with a Senior Consultant.