Opening a second location is a significant step for any owner looking to grow their business, but, like most milestones, timing is everything. Here are five signs that your business might be ready to expand:
1. Your First Location is Running Seamlessly
Having a rock-solid foundation for your company is key. It will allow your attention to move elsewhere without fearing repercussions. If your sales are not only consistent but on the rise, your employees are well-trained, happy, and capable, your customer satisfaction is outstanding, and all of the operational kinks are worked out—it just might be time to start considering.
2. Market Trends and Demand Are High
It sounds obvious, but it’s important to have your thumb on the pulse of market trends. If you’re unable to keep up with the demand at your current location, that’s one really great sign. Do some research to see just how much demand is out there for what you’re offering—and where. Opening up a second location nearby might be an option if your product is trending and competition is low, but if you find that you’ve tapped into the majority of customers in your area, look to see if there are any neighboring towns or cities where your business could fill a need. If your research comes back positive, it might be time to start looking for a broker.
3. You’re Confident in Maintaining Quality
A new and unique business plan is necessary to cater to whatever population and area that you choose for your second location, but having trust in the staff for your new location will be essential to maintaining quality—especially if someone else is running it. You’ve already set the standards for quality at your first location so it’s important to have those standards upheld by people who believe in them and are driven enough to make the second location as successful as the first. If you’ve got driven professionals who you can trust on your team, the next steps for your business might be closer than you thought.
4. You Have Sufficient Cash Flow
There’s no harm in seeking outside funding, especially from investors who are more focused on growing your business than seeing immediate returns, but taking on debt with high rates of return is always risky and something to avoid—especially when your new location likely won’t be turning a profit for the first couple months to a year. If you have enough cash flow to be able to fund a second location without having to look elsewhere, you’re likely prepared to open a second location.
If your business meets all of these credentials—congratulations! It might be time for a new and exciting chapter for you and your business. If not—don’t worry. There are plenty of other ways to grow your business without expanding. Learn more about how SinglePlatform can help that happen by improving your business’ presence online!