If you own a brick-and-mortar business, deciding when it’s time to open a second location is an important consideration. Small business expansion isn’t something to take lightly. But it can also be incredibly rewarding financially and professionally.
So, how do you know when it’s time to pursue this type of growth? Here are some indicators that it’s time to make your move.
6 Signs It’s Time to Open a Second Business Location
For a profitable and healthy company, opening a second location can offer your business the chance to expand its market presence and increase overall revenue. But making the move too soon can be risky. So, it makes sense to be deliberate about this business strategy. Here are six signs it’s time to take action.
1. You are overrun with business.
If your current location is doing a brisk business, this is an excellent sign. If you have so much business that you are struggling to keep up, it might be time to think about expanding. But make sure your spike in business isn’t temporary or due to a trend that is going to dissipate in the near future.
2. Many of your customers are from another area.
Sometimes, your customers will tell you when it’s time to open another location. If many of them are traveling significant distances to reach your store, they’ll probably let you know about it. This is a strong signal that you have a great product and a ready market elsewhere.
3. You have a strong team of employees.
Business expansion can be stressful in many respects. It will take you away from your original location as you work on your new strategy. Make sure you have a strong team of employees who support the idea and are willing to step into leadership roles as the company grows.
4. You’ve identified a strong market for your new location.
Another thing you’ll want to do, even if customers from a certain area tell you they want you there, is to conduct some market research. Take a look at things like demographics, traffic patterns, and other factors that may impact your results.
5. You have effective processes you can replicate.
Something that can help make your business expansion even more successful is if you have developed effective processes and systems at your current location that you can easily replicate at your new one. This will include things like customer service, hiring and training, and financial management.
6. You have the financial resources to execute growth.
Just as important as the other criteria, you’ll need to be able to finance your business growth. Some businesses use excess cash flow to do this. But you can also apply for financing if you have established good business credit.
Caldwell Commercial Real Estate for Your Business Growth Needs
Whether you’re looking to purchase or lease commercial property to accommodate your business growth, Caldwell Commercial Real Estate can help. Our commercial real estate firm in Charleston, SC, is proud of its team of real estate and property management professionals with over 80 years of combined experience. We can help you with your space planning needs and answer any questions you may have about the local area. Contact us today to learn more about how we can put our resources to work on your behalf.
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