When should you open a new location?
Imagine the following scenario: you own a handful of retail stores. Your processes are running smoothly, you have a loyal customer base, and you frequently have lineups out the door. Is now the right time to expand?
Answering this question is a challenge for many fast-growing business owners and franchisees. Opening new locations can feel as risky as it did opening your first one, and business owners may be reluctant to rock the boat. However, there are good reasons to explore the idea of expansion, and steps you can take to make the process run smoothly.
The benefits of opening new locations
There are at least five key benefits to opening new locations:
- Attract new customers: Opening in a new area can expand the number of customers within your reach. New sites can also create a media buzz that further increases your business’ visibility and brand awareness.
- Diversify your risk: Reaching a broader customer base means your business is less exposed to risk. If your current customer base represents all of your business, you risk financial trouble should your core customers stop showing up. This risk is reduced by having multiple locations.
- Meet a market need: If there’s unfulfilled demand for your product or service in a neighboring area–or a strong market trend toward your business offering–you can harness your existing business to meet that need.
- Better serve your current clients: If your business is currently experiencing high wait times for service, additional locations may help you provide a better customer experience.
- Benefit from economies of scale: Multiple locations can enable you to bulk-purchase and benefit from economies of scale. Franchisees may also find they receive higher levels of support from corporate headquarters when operating multiple locations.
Of course, when making the decision to expand, you should always carefully explore the risks and benefits to your business, and how expansion will change your projected costs as well as revenue. But if your current locations are running smoothly and doing well, exploring new locations may be the right next step for your business.
Opening new locations means hiring more staff… so ask for help
Once you decide to open a new location, there are a hundred and one things to consider. As an already successful business owner, you know there are many factors that go into making a new location successful. One of those factors is having great staff in place to serve your customers right from day one.
Working with a recruitment expert like Mindfield can help you get the right people in place when opening a new store location, without the stress. Our project recruitment solution is designed to help fast-growing business owners and franchisees staff new locations with high-quality candidates, quickly and on time. We’ve helped with over 200 store openings, so we can focus on what we’re good at while you focus on everything you do best.
Considering opening a new location? Contact us to talk about how Mindfield can help you find the right people for your new team.
Mindfield is a Recruitment Outsourcing solutions provider that partners with companies to create powerful hourly workforces. Our solutions combine a recruitment team, simple to use technology and a data-driven hiring strategy that promises to improve the quality of your hourly workforce. This approach focuses on tying business outcomes such as sales performance, tenure, and engagement to the selection, hiring and measurement of quality candidates.