Running a successful business in the 21st is a multifarious task. Business owners need to be more than leaders in their field; adaptability has become more important than ever before, while national and international crises require a level head to navigate financially. Even in times of relative strife, growth is possible – and with the right leadership, a stagnant business can thrive.
One of the chief ways a plateau-ed business can begin to increase its revenue is through the opening of a second location. This is not an undertaking to be taken lightly, though. Significant planning needs to be made, with the understanding that a new location is a significant investment that could scupper the business if not handled correctly. If you are nervous about making such a bold move, the following steps can help you through the process, giving you the tools to expand your brand and secure your success.
Narrow Down Locations
Firstly, you will need to have a rough idea of where you would like your second location to be. There are countless factors you will need to consider in order to answer this question, not in the least of which is the nature of your business. You may be looking for a suburban second office to house a regional team, or alternatively, looking for a venue or showroom. In terms of the former, a suburban location may make more sense for budget and commute, while the latter two may benefit from an urban space.
Create a Business Plan
With a vague idea of where you intend to expand your business, you can now draw up a business plan for that location. What is its exact purpose, what is your budget for setting it up and what is the timeline for achieving all of this? Creating a pipeline will help you visualise each step, and enable you to better manage the process. Opening a second location is not unlike the opening of your first – only, your branding and team already exist.
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Organise Funding
Next up, you will need to plan for how you will fund your second location. Not many businesses have the spare capital to fully invest in new property, staff and infrastructure – necessitating the search for funding. A common way to fund expansion is through applying for a loan with a commercial lender, though you may be able to secure capital from private investment.
Grow Your Team
With funding secure, you can begin the recruitment process for your new location, be it a venue or a branch. Since you are building your second location from the ground up, you will need an experienced and dedicated team to help you weather the teething period. It may be tempting to keep costs down by hiring less experienced workers, but the salary pays for itself in early problem-solving and establishment of the location proper.
