Personal time commitment, quality personnel and an expanded customer base are key factors that impact the success of a second store, according to retailers who have run multi-store operations.
These retailers are quick to point out the extra work and stress involved with running an additional location. Besides the increased responsibilities and travel time, there’s the concern over what is happening at the other store when you’re not there.
That’s why reliable managers and employees are essential for the second store. Without dedicated staff, quality of service can suffer. In your case, perhaps you and your husband could each supervise one store.
Make sure the location of your second store will enable you to increase your customer base, not simply spread your existing customers over two locations. Remember, too, that you’ll probably have to spend more on advertising in a new city where you aren’t already well known.
Other items you’ll need to have in place include:
- sufficient capital to get the new store off the ground — factor in costs like renting or purchasing the store space, maintenance, taxes, utilities, payroll and fixtures;
- a plan for reducing duplication of inventory, staff and back-end tasks like accounting;
- a point-of-sale system or other means of tracking performance separately at each store;
- appropriate legal structure and tax filings for the expanded business.
Talk with an accountant or business consultant for further tips on making the new venture successful.
