Why Opening a Second Location Requires a Fresh Strategy (Even If Your First Was a Hit) Here are some key points to consider before adding another location to your burgeoning multi-unit brand.
By Derrick Ableman, CFE Edited by Micah Zimmerman
Key Takeaways
- Success at one location doesn’t guarantee the same outcome for future expansions.
- Replicating your brand experience requires balancing consistency with adaptability across locations.
- Strong leadership and detailed processes are critical for sustainable multi-location growth.
Opinions expressed by Entrepreneur contributors are their own.
Congratulations! Your blood, sweat and tears have paid off, and the brand you've built is finally getting the recognition (and revenue) that it deserves.
As the next box on your "Market Domination Checklist" stipulates, it's time to open a second location — which should be easy, right? You did it once and you'd like to be able to pull it all off again. And then again and again and again.
But before you sign a lease and hang your latest shingle, you should know that the success of a first location does not guarantee the same outcome for its sibling.
To help you understand this potentially daunting double-up, I've put together some points to consider as you prepare to conquer even more of the world.
(Spoiler Alert: you'll be making lots of lists. And asking yourself hard questions, mostly through lists.)
Make your case
Approach the case for opening a second location with the same rigorous skepticism that you employed when you were drafting your initial business plan. All those original bullet points will still need to be covered — funding, build-out, staffing, marketing — but you'll also need to continue to support your first location.
Take the time to ask yourself if you truly have the capacity and team needed to do both things well. The last thing you want to do is dilute or damage the brand you've already built.
Purpose: Replicate or perfect?
From store design to workflow and product offerings, you likely have a number of things you'd like to improve or eliminate.
If your ultimate goal is to develop enough units to scale from a single region to multiple regions — or even multiple states — you'll need to work to make each business element as replicable as possible. Your second location is a perfect opportunity to identify what elements of your concept will naturally repeat and which things are too custom to execute under different circumstances by not you.
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 be willing to compromise on to streamline operations while still delivering the same experience that your clients have come to both love and expect.
Related: 4 Ways to Deliver an Authentic Franchise Brand Experience in a Brick & Mortar Space
Place: Site selection
This is a heavy topic, and unless you're a licensed real estate agent, you'll most likely work with a professional to find the perfect space.
Some things to consider heading into the conversation:
- Are you interested in either renting or purchasing a location?
- What's the average foot or drive-by traffic?
- What competitors might be lurking in this area?
- Do the location's demographics complement your business offering?
- What are the major 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. Get granular and be specific — if something isn't detailed or addressed, you invite your staff to improvise without your input.
That being said, do work to involve and empower your staff to contribute to the process. Some of the best ideas and innovations aren't derived from whiteboard sessions over takeout but from staff members who are directly involved with how your brand operates in the world.
Listen to your staff; they see things that 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 assassin, business is personal.
The staff you hire will ensure that your brand is executed as intended and that your clients are well taken care of. But instead of micro-managing every hire, you should focus on choosing the right manager.
Sure, you'll need to find reliable workers. Still, a manager who's invested in your company's mission and way of doing business will lead and reinforce their team according to that example.
Sit down and work out a wish list of all the qualities and qualifications that your dream manager would possess. Then, 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 fundamentals of people, processes, place and purpose are rock solid, you'll have the internal guidance necessary to overcome whatever challenges lie between you and total world domination.
