Expanding your retail business, in terms of opening a second location, opens up a world of opportunity. As a business owner, you’re in a different place than you were when you first brought your dream to life. In addition to potentially having greater financial resources, you have invaluable hands-on experience launching and running a business. These factors will be super helpful when you’re finally ready to scale things.
However, there are also aspects of growing your retail business that will be different this time around. So, no matter what you’re looking to accomplish by opening a new location (or locations), it’s important to be well prepared before you get the ball rolling.
Should You Open a Second Location?
If you’ve enjoyed personal and professional success with your retail business, you may decide to grow it by opening a second location. This might sound like a great idea, but adding a new storefront doesn’t automatically mean you’ll double your profits.
Opening a second location of your retail business will involve significant costs and labour, potential risks, growing pains, and other important considerations. Just like your first store, you’ll want to pore over the details carefully before making any decisions.
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- Working With a Business Broker: The Basics
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How to Expand Your Business
Decided to take the next step in expanding your brand? That’s great! Here are a few essential tips for growing your business to a second location.
1 Understand Your Financial Power
Finances are a big part of any business move, and you may remember what it was like to budget and save for your business many years ago. That said, it’s important to recognize that the financial elements of opening a second location will be different compared to the first.
For example, you’ll now have greater leverage with investors as an established brand. This can diversify and bolster your financial resources, giving you greater flexibility to accomplish more.
2 Explore New Locations
One exciting opportunity that comes with expanding your retail business is the chance to explore new locations. Even if you’d had success in your current community, opening a second location right down the street may not be the best way to grow your brand long term.
We’ve said it before on our blog – choosing the right location is absolutely critical, no matter what type of business you run. It will impact your store’s brand exposure, inbound foot traffic, real estate expenses, and more.
3 Keep the Details Under Wraps
Growing your business is an exciting journey, so it’s understandable if you want to share the good news with your team, customers, and the community through the process. However, it’s important to practice discretion and confidentiality early on, especially before certain details are finalized.
Vague information can lead to rumours and miscommunication, so it’s best to keep things under wraps. Plus, spoiling the surprise can make it harder to get people excited once it’s finally time to open the new spot.
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4 Make the Most of Brand Recognition
When you’re finally ready to announce the launch of your business’s second location, take advantage of your built-in brand power to get the word out. Leverage your social media following, industry connections, team members, and most loyal customers to spread the word and maximize early sales. If it fits your brand, consider hosting an in-store event to celebrate your brand opening.
Don’t forget to introduce yourself and make a splash in your new community, too. Wherever you open up shop, take the time to visit other locally-owned businesses in the area, meet your neighbours, and make new connections. These relationships can be impactful on your success.
Ready to Find the Next Location For Your Business?
Commercial real estate is constantly evolving. If you’re searching for the best place to expand your retail business, you’ll want to work with an industry expert who can connect you to the right properties. That’s where we come in – Carve Real Estate.
As leading commercial real estate professionals in Ontario, we’re tuned into the country’s most exciting, high-potential markets. Boasting expertise with a wide range of industry and property types, we provide educational, end-to-end guidance to ensure you have the upper hand. Whatever your commercial real estate needs may look like, we can help.
Ready to bring your goals to life? Carve Real Estate can help! Reach us at ryan@carverealestate.com or call 416-618-0054.
