There are many factors that can determine whether or not your small business is ready to expand with a new location. One is simple supply and demand. When a business turns the corner and begins consistently receiving more customer requests than it can accommodate, it could be a sign that expansion is needed, especially when a high percentage of these requests are not coming from a close proximity of the current location.
However, there are several things to consider before expanding:
How strong are your recruiting, hiring, and training processes? Typically, members of the current staff will need to move over to the new location, whether temporarily or long-term, to get things up and running with a solid foundation, as well as train additional employees. Ideally, this process should be underway before the new location opens (preferably with the training done at the initial location) so that a competent staff is already in place from day one. The primary focus at the new location upon opening should be to immediately begin generating revenue, not to hire and train a start up team.
Secondly, are there efficient, duplicable systems in place at the current location that can be easily transferred over to the new location? One reason why large chains and franchises, such as McDonald's, are able to seamlessly open new locations is that they have rock solid, standardized business methods and practices. Staff members at the new location shouldn't have to "reinvent the wheel" or create new business structure (short of minor adjustments due to market research and demographics as done by management). Again, the primary focus at the new location should be to generate revenue, not to come up with a new action plan.
Also, who will manage the new location? Will the current manager bounce between the two? In order to be most effective, the new location needs strong, experienced full-time management onsite that can figuratively take ownership of the location. Seasoned employees who have been trained and promoted from within are always great candidates for this role (i.e. an assistant manager at the current location), as these individuals will already be accustomed to the systems and procedures that are already in place. This person should show that he or she can successfully manage the existing location for an extended period of time before any expansion begins.
However, there are several things to consider before expanding:
How strong are your recruiting, hiring, and training processes? Typically, members of the current staff will need to move over to the new location, whether temporarily or long-term, to get things up and running with a solid foundation, as well as train additional employees. Ideally, this process should be underway before the new location opens (preferably with the training done at the initial location) so that a competent staff is already in place from day one. The primary focus at the new location upon opening should be to immediately begin generating revenue, not to hire and train a start up team.
Secondly, are there efficient, duplicable systems in place at the current location that can be easily transferred over to the new location? One reason why large chains and franchises, such as McDonald's, are able to seamlessly open new locations is that they have rock solid, standardized business methods and practices. Staff members at the new location shouldn't have to "reinvent the wheel" or create new business structure (short of minor adjustments due to market research and demographics as done by management). Again, the primary focus at the new location should be to generate revenue, not to come up with a new action plan.
Also, who will manage the new location? Will the current manager bounce between the two? In order to be most effective, the new location needs strong, experienced full-time management onsite that can figuratively take ownership of the location. Seasoned employees who have been trained and promoted from within are always great candidates for this role (i.e. an assistant manager at the current location), as these individuals will already be accustomed to the systems and procedures that are already in place. This person should show that he or she can successfully manage the existing location for an extended period of time before any expansion begins.
To take a deep dive into what it will take to expand your small business, let's talk! Contact me here.
Cory Collins
President/CEO
Ample Opportunity, Inc
Ample Opportunity, Inc
