If you have a successful small business, then you should celebrate! It’s impressive to be among the 50% of small businesses that make it past year five. You’re probably seeing healthy sales, consistent cash flows, and a steady stream of customers, but how do you know when it’s time to expand to another location?
Your business stands to gain a lot from opening another location: new customers, a more diverse employee hiring pool, increased brand recognition and popularity (though this shouldn’t be the main reason for expanding!). You could also negotiate some serious discounts if you increase your product orders from your suppliers.
But don’t be mistaken. There are also a ton of risks. For one thing, accounting becomes more challenging with two locations. When deciding how to pay for another location, many small business experts recommend treating it like a separate business and seeking outside sources of funding. The idea here is that you never want to cannibalize your original location. After all, one healthy location is better than two struggling ones!
Then, there’s you, the owner. Are you crucial to the day-to-day operations of you business, or can you step away for a couple of months to spearhead the effort to open your new location?
Have any questions, concerns, or anything to add to this amazing infographic? We seriously want to hear about it!