[et_pb_section fb_built=”1″ fullwidth=”on” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_fullwidth_post_title meta=”off” featured_placement=”background” text_color=”light” _builder_version=”4.16″ background_color=”rgba(255,255,255,0)” parallax=”on” text_orientation=”center” text_shadow_style=”preset2″ use_border_color=”off” global_colors_info=”{}”][\/et_pb_fullwidth_post_title][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row column_structure=”3_4,1_4″ _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”3_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Intro” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n
Business g<\/span>rowth is the entrepreneurial dream. With success and sustained growth,\u00a0<\/span>many<\/span>\u00a0<\/span>retailers eventually reach a point where they must consider an additional location in their business growth plan.<\/span>\u00a0<\/span>Even though expansion is the goal of most all businesses, identifying when it\u2019s time to grow beyond that original footprint is hard for some owners to recognize.\u00a0<\/span>Inc.<\/span><\/i>\u00a0magazine experts agree that there are a few basic questions entrepreneurs need to ask themselves before consider<\/span>ing\u00a0<\/span>a second location.<\/span>\u00a0<\/span><\/p>\n Do your sales justify expansion?<\/strong> Businesses with steady growth over a significant period are ripe for expansion. On the other hand, business owners considering additional locations after better-than-expected openings or terrific seasonal growth might be betting the future on a trend that won\u2019t last.<\/span>\u00a0<\/span><\/p>\n Is your business running smoothly enough to replicate?<\/span><\/span><\/strong>\u00a0<\/span><\/span>Success isn\u2019t all about how quickly customers buy products. It\u2019s often several factors that make a business successful: A pleasing atmosphere and comfortable shopping experience, responsive staff, and the proper mix of products are often why customers patronize a business.\u00a0<\/span><\/span>T<\/span><\/span>hose factors lead to success<\/span><\/span>\u00a0and\u00a0<\/span><\/span>growth<\/span><\/span>.<\/span><\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_testimonial author=”Roy Ash” job_title=”Co-founder of Litton Industries and former director of U.S. Office of Management and Budget” quote_icon_color=”#3e5062″ _builder_version=”4.16″ use_background_color=”off” global_colors_info=”{}”]<\/p>\n An entrepreneur tends to bite off a little more than he can chew hoping he\u2019ll quickly learn how to chew it.<\/span><\/span><\/p>\n [\/et_pb_testimonial][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”How strong is your market?” _builder_version=”4.16″ global_colors_info=”{}”]<\/p>\n How strong is your market?<\/strong> This question has a couple of answers. First, you need to determine how strong your business is in its existing market. If your store has a large local following and there aren\u2019t a lot of additional customers in the neighborhood, region, et cetera, maybe it\u2019s time to add a second\u00a0<\/span>store in a different\u00a0<\/span>location to your business growth plan.<\/span>\u00a0<\/span><\/p>\n Second, you need to consider how your industry is growing. The hardware and building materials industry, for instance, has companies recording record growth this year. Ace Hardware reported record first quarter revenues of $1.38 billion, a 5.1% increase from 2018. Home Depot also reported sales of $26.4 billion over the first quarter, a 5.7% increase over last year.<\/span>\u00a0<\/span><\/p>\n Can your business handle a second location?<\/strong> Both time and money need to be factored into this answer. A second location must be able to stand on its own in terms of cash flow and personnel. It must live or die independent of your original store. You shouldn\u2019t cannibalize your first store to feed your second and you don\u2019t want to lose customers from one location to the other. A new location is about adding customers and profits.<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_testimonial author=”Steve Jobs” job_title=”Chairman and CEO” company_name=”Apple Inc.” quote_icon_color=”#3e5062″ admin_label=”Testimonial – Steve Jobs” _builder_version=”4.16″ use_background_color=”off” global_colors_info=”{}”]<\/p>\n I’m convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance.<\/span><\/span><\/p>\n [\/et_pb_testimonial][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Have More Answers Than Questions” _builder_version=”4.16″ global_colors_info=”{}”]<\/p>\n Once those questions are affirmatively answered it\u2019s time to\u00a0<\/span>write<\/span><\/i>\u00a0them into your business growth plan.<\/span>\u00a0<\/span><\/p>\n \u201cDo you have a dream of having $10 million dollars in sales this year, or $20 million dollars in sales this year? Or do you have a goal,\u201d says Wanda McCullers, who owns Farmers Feed Service in Wetumpka, Alabama with her husband Clint. \u201cDreams are great. I can have one of those when I go to sleep tonight. You\u202fhave to\u202fhave a plan that\u2019s written down. If it\u2019s not written down, it\u2019s not a plan.\u201d\u202f<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Planning for success” _builder_version=”4.22.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n Planning for success means determining why you\u2019re opening another location.<\/span>\u00a0Are you:<\/span>\u00a0<\/span><\/p>\n Having answers to those questions means you have a good idea about your new clientele. The goal is that these customers will be new to your business, so you might need to consider adjusting your product line, altering your marketing tactics, and maybe even changing up the formula that made the first store successful.<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Best Laid Plans ” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” use_border_color=”off” global_colors_info=”{}”]<\/p>\n Business growth plans cover all the bases: From concept to completion. They should:<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][et_pb_blurb title=”Outline the business and its industry ” use_icon=”on” font_icon=”k||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Outline” _builder_version=”4.16″ animation_style=”slide” animation_direction=”left” animation_delay=”600ms” animation=”left” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Explain how it will make money ” use_icon=”on” font_icon=”k||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Explain” _builder_version=”4.16″ animation_style=”slide” animation_direction=”left” animation_delay=”600ms” animation=”left” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Analyze the competition ” use_icon=”on” font_icon=”k||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Analyze” _builder_version=”4.16″ animation_style=”slide” animation_direction=”left” animation_delay=”600ms” animation=”left” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Outline its market strategy, target market and projection of market share ” use_icon=”on” font_icon=”k||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Outline market” _builder_version=”4.16″ animation_style=”slide” animation_direction=”left” animation_delay=”600ms” animation=”left” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Contain a pricing strategy ” use_icon=”on” font_icon=”k||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Contain” _builder_version=”4.16″ animation_style=”slide” animation_direction=”left” animation_delay=”600ms” animation=”left” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Feature a promotional plan including advertising, marketing and sales promotions ” use_icon=”on” font_icon=”k||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Feature” _builder_version=”4.16″ animation_style=”slide” animation_direction=”left” animation_delay=”600ms” animation=”left” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Have a projection of sales potential ” use_icon=”on” font_icon=”k||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Have” _builder_version=”4.16″ animation_style=”slide” animation_direction=”left” animation_delay=”600ms” animation=”left” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Contain a budget that includes everything from storefront and equipment to staffing and overhead ” use_icon=”on” font_icon=”k||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Contain” _builder_version=”4.16″ animation_style=”slide” animation_direction=”left” animation_delay=”600ms” animation=”left” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Determine the organizational structure ” use_icon=”on” font_icon=”k||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Determine” _builder_version=”4.16″ animation_style=”slide” animation_direction=”left” animation_delay=”600ms” animation=”left” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Have financial data to back up the overall business plan ” use_icon=”on” font_icon=”k||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Have financial” _builder_version=”4.16″ animation_style=”slide” animation_direction=”left” animation_delay=”600ms” animation=”left” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Forecast income and cash flow ” use_icon=”on” font_icon=”k||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Forecast” _builder_version=”4.16″ animation_style=”slide” animation_direction=”left” animation_delay=”600ms” animation=”left” global_colors_info=”{}”][\/et_pb_blurb][et_pb_blurb title=”Contain a balance sheet ” use_icon=”on” font_icon=”k||divi||400″ icon_color=”#cc6633″ icon_placement=”left” admin_label=”Blurb – Contain” _builder_version=”4.16″ animation_style=”slide” animation_direction=”left” animation_delay=”600ms” animation=”left” global_colors_info=”{}”][\/et_pb_blurb][et_pb_text admin_label=”When opening” _builder_version=”4.16″ global_colors_info=”{}”]<\/p>\n When opening a second location, the foundation for much of this information is already available at the successful startup through its performance data.<\/span><\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Planning for Growth” _builder_version=”4.22.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n Seek advice in your network.<\/strong> It never hurts to consult someone who has \u201cbeen there and done that.\u201d Business associations, chambers of commerce and industry cooperatives are filled with people who know how to grow and expand a business. Asking questions doesn\u2019t hurt.<\/span>\u00a0<\/span><\/p>\n TJ and Kami Comstock own five hardware stores in Montana and TJ has been involved with North American Hardware and Paint Association (NHPA) leadership for several years. He says his experience on the board of directors has been invaluable in running his business.<\/span>\u00a0<\/span><\/p>\n \u201c<\/span>The board is comprised of hardware guys from all different kinds of stores and co-ops. So, you get to sit around the table with a lot of people who are\u00a0pretty well\u00a0versed on what\u2019s happening in our industry,\u201d TJ explains. \u201cYou hear a lot of ideas, what\u2019s been successful for them, the kind of areas they\u2019re succeeding and struggling in. So, the networking alone is a value. The insight my fellow board members\u00a0<\/span>give me is worth a ton of value. If I\u2019m having a problem, I can call them and they\u2019ll share ideas, share information<\/span>,<\/span>\u00a0stuff like that.\u201d<\/span>\u00a0<\/span><\/p>\n TJ adds that many industry associations like the NHPA also offer information and training that help members build their businesses. <\/span>\u00a0<\/span><\/p>\n Make sure there\u2019s enough cash<\/strong>.<\/strong> Duh! Obviously, the first location must be successful, or a second wouldn\u2019t be under consideration. It\u2019s important to have enough cash or financing so the second location doesn\u2019t threaten the viability of your original store.<\/span>\u00a0<\/span><\/p>\n Standardize your operational procedures.<\/strong> Since your first location is running successfully and smoothly enough to expand, use that store and its operations as the baseline for your new store. Procedures that are easily replicated are:<\/span>\u00a0<\/span><\/p>\n Employee training and HR documents are easily transferable, although some amount of customization may be necessary. Merchandise return policies, rewards programs and how to handle complaints can also be used in multiple stores.<\/span>\u00a0<\/span><\/p>\n Get the right people.<\/strong> Depending on how closely your stores are located, some employees might be able and willing to move from store to store. Those current employees could also be candidates for supervisorial or managerial positions at the new location. Having a reliable store manager is crucial to a new location because the owner can\u2019t be in two locations at the same time.<\/span>\u00a0<\/span><\/p>\n Use technology to simplify operations.<\/strong>\u00a0Whether you\u2019re opening a second location of your existing business or expanding your company by purchasing a similar business in another region, having scalable retail technology can simplify operations and make opening that new store easier. Retail management platforms come in all sizes, but sophisticated systems allow business owners to manage multiple stores from a single location.<\/span>\u00a0<\/span><\/p>\n They allow stores to communicate and share information such as inventory, customer activity and rewards programs incentives. They also consolidate information to provide you a global view on how the stores are performing individually and as a unit. And they allow you to manage multiple locations with inventory management tools, time-tracking and accounting software, mobile applications and marketing integrations.<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row column_structure=”3_4,1_4″ _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”3_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”One for All, All for One ” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n Communication is the key to managing multiple stores. Once your second or third or fourth locations are established, they need good communication to work cohesively.<\/span><\/p>\n Weekly or even daily communication is valuable to share information on sales or marketing promotions, store policies and any news that might affect business.<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_testimonial author=”Steve Martin” job_title=”Actor, comedian, musician” quote_icon_color=”#3e5062″ _builder_version=”4.16″ use_background_color=”off” global_colors_info=”{}”]<\/p>\n Be so good they can’t ignore you.<\/p>\n [\/et_pb_testimonial][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Good communication” _builder_version=”4.16″ global_colors_info=”{}”]<\/p>\n Good communication is necessary, too, because stores can share inventory, personnel or other resources if they in near each other. Experts suggest\u00a0<\/span>owners<\/span>\u00a0make new stores\u00a0<\/span>their<\/span>\u00a0home base until\u00a0<\/span>they are up and running. This allows\u00a0<\/span>them<\/span>\u00a0to see how operations are going and fix any malfunctions before they become ingrained in store operations.<\/span>\u00a0<\/span><\/p>\n Whether you\u2019re considering opening your second location or your sixth, business growth is key to success and building on a solid foundation is the best way to start.<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_team_member name=”Brian Bullock” position=”Author” admin_label=”Brian’s Author Box” _builder_version=”4.16″ border_style=”solid” global_colors_info=”{}”][\/et_pb_team_member][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Expansion is the goal of most businesses, but knowing when it\u2019s time to do it is hard for most businesses to recognize. <\/p>\n","protected":false},"author":13,"featured_media":27945,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3,75,16,4,18],"tags":[],"class_list":["post-27727","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-posts","category-grow-your-business","category-how-tos","category-industry-news","category-retail-hacks","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"\nHave More Answers Than Questions\u00a0<\/h2>\n
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Best Laid Plans\u00a0<\/h2>\n
Planning for Growth<\/h2>\n
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One for All, All for One\u00a0<\/h2>\n