What to Consider Before Opening a New Business Location
You know you want your business to grow, but are you ready? It can be hard to know. Consider these details before taking the leap.
Why do you want to expand?
Expanding your business just to expand can cause you some major problems down the line. To successfully add a new location to your business, it’s important to have adequate rationale and drive behind it. Understanding your overall goal, and having an in-depth business plan, is critical to the success of your new location and overall business. Without having a goal, it’s hard to track success and ensure that your business is growing.
Is your current location successful enough to expand?
Your current location is the foundation of your business. The current business location is home to your brand, your customer base, and your employees- if these things aren’t stable the problems will transfer into your new location. Additionally, you want to ensure that your customers are loyal enough to whether the storm of a new location, where things often go awry during the opening months. If they’re already on the fence about your business, encountering bumps in the road at the new location could send them out the door.
Your current location will also likely provide the economical foundation for the new location. Ensure that your first location is economically stable, because it may be the breadwinner until the new location finds its own success, stability, and return on investment.
Have you tested other markets?
Before you open a new location it’s important to understand if your business will be successful under different circumstances. Are the markets you’re interested in open to your business type? A good method to test a new market is through a pop-up shop. Pop-up shops help you determine the success of your business in new locations, create additional brand following, and are inexpensive to execute.
Do you have a foundation in place to support both locations?
To successfully open a second location, it’s important to have a Point of Sale (POS) system that will support both locations. Having a singular POS system for multiple locations allows you to report across your entire business, manage inventory from a single hub, and more. Reviewing your POS system and its capability will help you understand how prepared you are to open additional locations.
Does your POS offer your business the support you need? Are you ready to simplify your business with the use of a new POS? SilverEdge can help. If you are ready to talk with a SilverEdge representative about the right choice for your business, contact 970-800-2890 or email [email protected] today.