When you run your own business, no matter what size, you can eventually reach the point of expansion. Though you started with one brick-and-mortar store, you could grow into a multi-location operation. If you want to maximize your current growth, learn how to expand your business to new locations.
Budget and Allocate Resources
Expanding to a new location takes time, money, and resources, so you must begin setting aside the funds for your new enterprise. You’ll need a business plan that accounts for every detail. Remember, you’re not just creating a carbon copy of your current store.
Adding another place of business comes with many organizational changes and accounting considerations. Suppose you have a point-of-sale system in place for your current store; you should budget the cost for a new POS system that manages multiple locations. Budget and allocate resources now for all the items and systems you’ll need later.
Hire a Second Staff
When you start a second location, you need people to work that shop. Start the location manager selection sooner rather than later. You must trust this person to handle the day-to-day work of your new store. With a qualified candidate in mind, you can begin teaching them the ropes and giving them opportunities to shadow your managerial work.
You should also establish the boundaries of their position and their ability to change the store. For example, they may want to reorganize the sales floor, so give them the freedom you deem appropriate.
Plan Your Inventory
A new store means more inventory to sell. This will incur a high cost on the front end, but then again, you’re basically setting up shop all over again. While your first location generates revenue that can absorb much of that overhead, you should still plan for how you’ll pay these new expenses.
Consider the products themselves. Will you sell the same items? Or will you offer a few different products? Regardless of your approach, you should work with your suppliers and alert them to your anticipated increased need. You can also leverage your partnership and use larger volume orders as bargaining chips for better discounts.
As a business owner, you should know how to expand your business to new locations so you can make a move when it feels right. With these tips and tricks, you can get the ball rolling today and maximize your business in the years to come.
The Edge Staff