Do you currently own a successful frozen yogurt shop? Are you looking at opening another location? If you are deciding on expanding to more locations, take a look at these considerations to make sure you are ready for it!
Before you look into another store, look into your current store and its business cycle. Take a look at financials to see how your progress has been. Measure all of the pros and cons of the location. Take everything into consideration. Figure out what makes the business successful and see if it can be duplicated. Your current business should have been consistently improving and operating efficiently with income.
Next, lets think numbers! In order to open up a new location, you need to have sufficient capital so that you do not have to borrow from anyone. Check your cash flow from your first shop and see if it is enough to start another location. Try to avoid loans, investors or any other source of capital from others so that you are not under any return rate obligation. Paying off investors or giving up part of the company is not the best way to go about opening up a new location.
To consider a new store, do your research on potential locations. Find an area that matches your first store’s demographic. You want to be in a place where you can drive high traffic, which will turn into sales. Focus on places that will provide financially healthy business.
If you have found an opportunity, financially and location wise, and have reviewed all of these steps then you are ready to commit. Now you have to write a new business plan for your new location. Just because you are replicating an existing one, you will have new staff and some changes that you want written out so that you can stay on track. Assign responsibilities that you need to accomplish and most importantly, do not rely on the success of your first shop to succeed in the second one. You must continue to work hard!
Here is a simple test to determine if you should expand:
start here—->Is your current business successful and running smoothly?
if you answered “YES”————-> Do you have enough funds to support a new store without borrowing money?
if you answered “YES”———————————-> Is there an available location that would bring you the same or better business opportunity?
If you were able to get to the end with all of your “YES” responses then you are aware of the responsibilities and risk you are taking to opening a second location. If you feel confident and want to seize an opportunity then go for it, Good Luck!