Expanding to a Second Location

Expanding to a Second Location

The first expansion of your business is a significant step accompanied by a number of factors to consider. With a second location, you’ll be doubling the management processes including employees, products, and customers. If a plan for expansion is not well-thought-out, your second location could falter and even negatively impact your original business.


Consider these issues before making the final decision to expand:

Determine whether or not you can duplicate your business.

Is the owner’s presence critical to the success of the business?

Can employees be trusted to manage day-to-day operations?

Measure the strength of your current business.

The flagship location should be viable and profitable before investing into a new location.

Perform market research focused on proposed new location.

Start by studying the consumer traffic and competition in the area to determine whether it can support your expansion. Be sure to observe business activities during different times and days of the week.

Be sure to have adequate funding for the proposed new location.

Opening another location comes with extra expenses. You should be able to cover all upfront costs, as there might not be a return for a couple of months. Create a list with realistic cost estimates of everything needed to get the new spot up and running. This could include:

·Lease vs. buy

·Furniture, displays, signage, etc.

·Initial inventory

·License and permits

·Professional fees

Know the financial and legal implications.

Don’t let financial and/or legal implications delay the process of expanding your business. legaldifferent™ is the next big thing for small businesses, with competent, affordable and approachable business and legal collaboration.


Opening a second location is a significant decision for any business owner. In many ways, it will be like starting the business over again. Remember to base your decision on verifiable business logic modeled after the success of the flagship location. Let legaldifferent™ guide you along the way with business and legal collaboration tailored to your needs and schedule.






Hecht, Jared. “Opening a Second Location? Here’s What to Keep in Mind.” Entrepreneur. N.p., 02 Aug. 2016. Web. 03 Aug. 2016.