Did you know that only 25% of businesses last 15 years or longer?
Having that kind of longevity takes a great business idea, excellent customer service, and keen business strategies. If you’ve managed to implement that successfully in one location, you might be ready to open a second.
Before taking that leap, there are a number of important factors to consider. You need to know whether you’re financially ready to open a new business branch and how to make sure it’s as fruitful as the first. Keep reading for those details and more.
Financing a New Business Branch
If you’re turning business away because you’re too busy, you’re running out of space, or can’t keep up with inventory demands, these are all good signs that your business is doing well. But being profitable isn’t always enough to build a second business branch.
First, ensure that your current sales success isn’t temporary. The demand for your business must be consistent in order to justify opening a new business location.
Second, you’ll need to have an accountant go over your revenue, profits, cash flow, and financing. They’ll determine if a business expansion is sustainable. An important aspect of this is whether you can keep your current location financially stable as you build the business at a new branch.
Another important consideration is whether you can finance the second location with money on hand. If not, you might consider looking for investors, for whom you’ll require a business plan. You can visit this website for help with business planning.
Don’t Fix What’s Not Broken
If you’re considering a business expansion, the assumption is that you’ve been successful enough at one branch to open another. That means you’ve done something right, so don’t go making any significant changes to your brand, your mission, or your values. Instead, carry what works over to the second location.
To do this correctly, look into what processes have made your business successful up until this point. Document that information and organize the new business branch accordingly, especially in terms of training new employees.
…That Includes Culture, Too
It’s easy to build and maintain a healthy company culture when you’re all working in the same space. But how do you ensure that a new business branch has and maintains that culture? Especially with new employees, new management, and the inability to be in both locations at once all the time.
There are a few ways to transport company culture across a growing business. You might consider having a partner or a trusted employee head up the expansion. In order to maintain the culture, consider having company retreats and regular video conferences that include all branches.
More Helpful Business Advice
Opening a new business branch is not a decision that should be taken lightly. It takes a lot of planning in terms of financials, organization, and culture. But if you’re successful, a business expansion may be the best idea you’ve had yet.
And for more helpful business advice, be sure to check our Service & Business section regularly.