Congratulations, your first business is a success! It is time to move on and open a new branch so your products and services can reach a new group of people. Here are some of the things you need to consider when opening that second location.
Have You Actually Got the Capital?
You might think that your first business is doing well enough and is profitable but is it profitable enough to front all the costs of a new location? From rent, outfitting costs, new equipment, new staff, the list of costs will grow and grow. It is going to take a tremendous amount of money for you to open that second location and also build it to be profitable. You can’t let the first business flounder for the benefit of the second.
An easy way to get around this is with a business loan. So long as you can provide a solid business plan with proof as to why you believe the new location will be profitable, you should have little trouble securing a loan.
Is the Second Location Going in the Right Place?
Remember how carefully you researched the location of your first business? You must be equally vigilant if not more so with the second. Not only do you have to work out how much demand there is for your business in the local area, there are a few extras you need to consider.
If you are opening a second location near your first, you need to know how close they are to one another. Will they, in fact, impact on each other’s business?
If you are opening the location in another city, you have to think about distance. How quickly would you be able to get there in an emergency?
Setting Up for Success
One of the best things you can do when opening your second location is prepare the first for the new addition. This can involve many things – such as training the new staff in the old location – but we think one of the key steps is to get your SD WAN up and running. This handy network will allow both businesses to become part of the same computer network despite being potentially miles apart.
Having both your businesses operating around the SD WAN in this way will speed up company efficiency and will allow both branches to communicate more efficiently and effectively.
Clear Up the Red Tape
There may be some legal implications if you want to open a second location. Get in touch with your lawyer or solicitor for more advice on what you will need. At a minimum, you might need to change the structure of your business or take out some new licences for the specific locations; it all depends on what the council or local government needs.
Opening your second location is an important step in your entrepreneurial journey. Make sure you have all the tools for success you need so you are not left trying to fix problems when they arise.