Why expanding to a second location isn't as easy as it seems


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congratulations! Your blood, sweat and tears have been paid for, and brand you've built is finally getting the recognition (and revenue) it deserves.

As the next box on the Market Dominance Checklist defines, it's time to open a second location – which should be easy, right? You did it once and wish you could do it all again. And then again and again and again.

But before you sign a lease and hang up your last shingle, you should know that the success of the first location does not guarantee the same result for its sibling.

To help you understand this potentially scary doublingI've put together a few points to consider as you prepare to conquer even more of the world.

(Spoiler Alert: you will LOT of lists. And asking yourself tough questions, mostly through lists.)

Make your case

Case approach for opening a second location with the same rigorous skepticism you used when you were drafting your initial business plan. All of these original points will still need to be covered—funding, construction, staffing, marketing—but you'll also need to continue to support your first location.

Take the time to ask yourself if you really have the capacity and the team to do both things well. The last thing you want to do is dilute or damage the brand you've already built.

Goal: Repetition or Perfection?

From store design to workflow and product offerings, you likely have a number of things you want to improve or eliminate.

If your ultimate goal is to develop enough scale units from a single region to multiple regions—or even multiple countries—you'll need to work to make each business element as repeatable as possible. Your second location is a perfect opportunity to identify which elements of your concept will naturally repeat themselves and which things are too common to execute in different circumstances than yours.

Make a list that identifies the core elements of your brand experience. This is more than just your product or service; it's the look and feel of your location, the attitude of your staff, and a thousand other things that set you apart.

Then, review the list to see what you would or would not compromise on simplify operations while still delivering the same experience your customers have come to love and expect.

Related: 4 ways to deliver an authentic, exclusive brand experience in a brick and mortar space

Country: Site selection

This is a heavy topic and unless you are a licensed real estate agent, you will most likely work with a professional to find the perfect space.

A few things to consider when starting the conversation:

  • Interested in renting or buying a place?
  • What is the average foot or car traffic?
  • What the competitors can hide in this area?
  • Do the demographics of the location complement your business offering?
  • What are the key economic/cultural drivers surrounding your location?
  • How will this community grow over time?

Processes and people: How to do everything right

Unlike most other areas in life, being obsessive and paranoid will pay off here.

Take the time to create training manuals for everything from using the POS system to following up with customers. Be detailed and be specific – if something isn't detailed or addressed, you invite your staff to improvise without your input.

That said, do work to include and empower your staff to contribute to the process. Some of the best ideas and innovations come not from whiteboard sessions, but from staff members who are directly involved with how your brand works in the world.

Listen to your staff; they see things you may be blind to.

Related: How investing in a multi-unit franchise can positively diversify your portfolio

Focus on your leadership

Unless you're a highly paid international hitman, business is personal.

The staff you hire will ensure that your brand is executed as intended and that your customers are well looked after. But instead of micro-managing every hire, you should focus on choosing the right manager.

Of course, you will need to find reliable workers. However, a manager who is invested in your company's mission and way of doing business will lead and empower their team by that example.

Sit down and compile a wish list of all the qualities and qualifications that your dream manager would possess. Next, research similar roles and job titles at your competitors to develop a profile of your perfect fit.

Related: 5 important things to know when preparing to lease a retail space

There are miles to go beyond these points and a million variations per vertical and brand.

But if these foundations of people, process, place, and purpose are solid, you'll have the inner guidance you need to overcome whatever challenge lies between you and total world domination.



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