So you’ve beaten the odds and developed a successful small business. The burning question at this point is, what is your next step? Many small business owners would like to expand their business but don’t always have the space to do so. The answer could be opening a second location. There are many factors you should weigh before making that decision and several other steps you’ll need to take to ensure success. A second location is a significant investment, it’s important how to know when you’re ready. Here are some questions to ask yourself before taking the plunge.
How Well Is Your Current Location Running?
The first thing to look at when considering opening a second location is the health of your current location. Are you doing enough business to warrant expansion? You also have to realize that your new location will take up a lot of your time and resources. If your current location isn’t running like a well oiled machine, that is something you’ll need to fix before expanding.
Can A Second Location Run Without You?
As the saying goes, you can’t be at two places at one time. You need to make sure you have an airtight business plan that will carry over to the new location. Additionally, you will need to hire qualified people that you can trust to operate your business without your supervision. You’ll need to take a detailed account of your responsibilities and determine whether or not you have someone you can trust to handle all of them.
How Is Your Market Trending?
Before making the decision to expand, you need to see which way the market is trending for your niche. This can be done by researching the success of your competitors and what direction they’re going in. While you don’t want to depend on them solely, they can be great indicators of where the market is heading. You may also want to take a look into new technology within your industry. Make sure your current location is ready to compete into the future before considering a new one.
Is There Another Region With A Need For Your Business?
You’ll need to research whether or not there is another area that would be ideal to open a new location. Looking into demographics and similar businesses within your target areas will help to gauge the need for your company. It’s important that you take your time in selecting a new location. You need to look at this as a new business and that perspective will help with your decision making.
Is There A Better Alternative?
The big reason for opening a second location is increasing profits, however, it is a risky endeavor. Take a close look at your revenue goals and determine whether or not there is a better alternative. Could your company better benefit from improving your current location? A new marketing campaign? Perhaps revamping your current business plan is the way to go. While a second location can dramatically increase profits, make sure the risk aligns with your goals.
Are You Mentally Prepared?
As a small business owner, chances are you are already quite busy. A new location will only make you busier. You need to take stock of your personal and family life and determine what kind of impact the added work will have on you.
How Will You Fund Your Expansion?
Not many small business owners have the available cash flow to open a second location without help. Quikstone Capital Solutions works closely with small business owners to offer advice and provide funding to expand and improve. A merchant cash advance is one of the fastest and easiest ways to obtain cash for your expansion. Many small business owners have difficulty obtaining a bank loan due to strict qualifications. Consider a merchant cash advance from Quikstone Capital Solutions to finance your expansion.
