Business owners looking to expand their operations to a second location often wonder what is involved in the complicated process. We talked to four businesses with multiple locations to share what other business owners should know before opening a second location.
From finding the right business loan to ramping up marketing efforts, here’s what you need to know.
What You Should Know About Opening a Second Location
There are several things business owners should be aware of during this exciting and nerve-wracking time of growth. Lucky for you, we are sharing tips to help you prepare for the process.
It May Be Tricky To Get a Business Loan
Depending on your industry, your credit history, time in business, annual revenue, current debts, and other factors, getting a loan may not be easy. The Callaway Bank shares that getting loans as a small business owner can be difficult if you lack time in business or a solid credit history. Work on building your credit and paying off debt before applying for any loan to help fund opening a second location. Getting a loan for expansion is definitely possible, but it might take some time and preparation first.
Find the Right Location for Your Target Audience
The Lash & Sugar Company shares that market research is extremely important in determining where to open a second location. You will need to ensure the location you plan you build or buy property is ideal for your target customers. Does your business fill a need that the area is experiencing? Are there enough potential customers around to make opening a location in the area worth it? Do a deep dive into the demographics to see if a location is right for your business.
It May Feel Like Starting Over
A representative from European Denture Center states, “When opening a second location, it may feel like you’re starting from scratch again even though you aren’t.” Having to promote your second location on search engines and through social media marketing will take time. Before you have customers or clients knocking down your door, you will need to put in a lot of effort to build a strong customer base again by ramping up your marketing efforts. But don’t let this discourage you. Ultimately, opening a second location will drive business and promote more growth in the future.
Don’t Expect a Seamless Experience
The team at Texas Adoption Center is no stranger to opening different locations. With over ten branches throughout the state of Texas, they know how to successfully expand. The team shared that business owners should know that a seamless experience is highly unlikely. Although being prepared to open a second location will help significantly, expect some hiccups to occur. Even after opening multiple locations, there are always things that won’t go as smoothly as you planned. Be open to making adjustments and problem-solving on the go to make the process more enjoyable.
If you are opening a second location for your business, congratulations! This means you are seeing growth and have the opportunity to reach more customers. Keep these four things in mind as you start the process of expanding your business to a second location. You’ve got this! Good luck.
