For many small business owners, growing to multiple stores marks a successful business. Expanding to more than one location is exciting because it broadens your customer reach and can be very profitable. But this type of expansion comes with a few stipulations that you would be wise to consider before you make this big decision. There will be some challenges along the way, but there are ways that you can prepare for them.
To start, you can expect to lose “founder presence” and have to adjust accordingly. Founder presence refers to both the personal feel of the single store and the physical presence of the store owner. When you grow to more than one location—though you may still manage multiple stores—you cannot be in several physical spaces at once. You might lose, for example, the organic touch of hiring staff or training staff yourself, so you should prepare yourself to delegate those tasks to others. It’s also smart craft SOPs (Standard Operating Procedures) which compile information about standards, rules, and practices into documents that your delegated management team can uphold without you there to guide them.
Another point to consider involves not just your expectations, but customer expectations. When people walk into your new location, they should expect the same atmosphere, layout, and services from your first location. Again, without your physical presence, you lose the personal tone of the store, but you should still be able to maintain the consistency of your brand and image. You should also maintain personal customer relationships. Keep your loyal customers in the loop about the new expansion and what it means for them. Share the good news on social media and thank them for helping your business grow big enough to expand.
There are also some logistical parts—such as inventory and expenses—that are worth mentioning here. Let’s start with inventory. For however many locations to which you expand, that growth requires a centralized tracking software system to prevent overstocking (too many products) and stockout (too little). Your general accounting systems should be consistent with each other to ensure that scheduling, payroll, and other mechanical parts of your business are up to date. That brings us to expenses. Costs such as payroll, rent, and utilities double as soon as you double your store, and revenue at your new location starts at the bottom and needs time to build up. Therefore, your first location has to be profitable and stable enough to help your second location with expenses, without hurting itself in the process.
As mentioned above, expansion is a huge accomplishment for a lot of business owners, but it’s also a big decision that requires careful planning beforehand. Remember not to make the jump without ensuring that the first location can stand on its own and run smoothly without your supervision. Set yourself up for success, and good things will come your way.
