Chapter 6 includes a section on selecting a location. As your business becomes more successful you may decide to open a second location. How do you make that decision? "Many small business owners start with a successful operation but struggle to move beyond that. It's hard to duplicate success, especially with so many factors involved - location, demographics, product lines, etc. Opening a second location takes a whole lot of work and the right timing. This video walks you through 7 questions you should ask yourself when deciding how to open a second (or third, or fourth...) for your business. Remember, growth is great, but only if you can scale sustainably." (there is some point of sale advertising at the end of this video that you can ignore.) After you watch the video please Add your own 250-300 word Discussion Topic. Discuss the important topics from the video. Include what you found most interesting or surprising. Be specific. What do you think is the most important consideration to open a second location? What do you think would be most difficult in opening and operating a second location?

your customers have come to expect should stay on the menu. Use your existing operational tools, including the same POS system. You need your sales reporting and inventory management to be under one system, so keeping a uniform point of sale for multiple locations is critical. Make all lines of communication streamlined by using the same service for each location. Your prices shouldnt vary too much. Shoppers who have been to your first location will be turned off if the new shop is more expensive. Implement the same CRM system so that shoppers can receive the same loyalty benefits at any of your businesses. And finally, make all branding on point and design similar enough so that customers recognize each store as being related. But, as I mentioned, you still want your new location to stand out. Add new menu items and some differences in your layout to make the experience unique. Its good if you have shoppers who prefer one location over another. This means that they have a personal connection to your business and will likely be back.

WHAT IS THE MARKET REALLY LIKE?

Next, plan to conduct some basic market research to ensure that youll have adequate demand for what you sell. You are likely to have a hunch on most factors that go into creating your new location. But make sure you confirm these with actual objective research into each matter. Build a separate business plan and start by defining a narrow target market. Consider the demand for your product and services while also taking into account the expected competition in the areas youre looking at. Gauge your marketing costs and the best advertising outlets for your target audience. Run some basic tests so that you can confirm all of this. As we mentioned earlier, pop-up shops are a great way to try out new products or test new markets. Its a far lower investment than an actual full retail space, but will most closely mimic an actual retail environment, giving you a more accurate picture of your future business.

HOW CAN I GET APPROPRIATE FUNDING?

Lastly, youll need to secure the appropriate funding. Opening a new shop is going to be expensive. Retail space leases are not cheap and putting together the infrastructure of an entirely new store adds up fast. So, its necessary to get all financials in order from the beginning. In part, this will be an aspect of your business plan. Determine how much liquid cash you have to invest yourself. You dont want to starve your existing location or yourself, but investing some of your money into the project is wise. Look for outside investments from friends, other business owners, or people excited about what youve created. Individual investors can go a long way towards funding a second location. Peer-to-peer lending options online are starting to replace traditional bank loans. Check out our blog on this alternative financing to learn more. And banks are still an option, too. There are typically better solutions for most businesses, but a local credit union or bank can also finance your new store. As I talked about earlier, its important that you have a uniform point of sale solution between all of your locations. And for businesses with a single location, youll need a POS system that can help your business scale. POS inventory management and sales reporting provide you with remarkable insight into your business. Youll be able to identify problem areas and the necessary changes to fix them. If youre interested in growing your business and expanding to new locations, try out KORONA. Its built to help retailers grow and become multi-store operations.