4 Things to Consider when Expanding Your Business
The do-it-yourself bug has hit harder than ever with today’s consumers. A lot of us are finding plenty more time on our hands, and when you couple that with stay-at-home orders, it’s tough to ignore all the small house projects that’ve been piling up. During the coronavirus pandemic, hardware stores have been faring better than a lot of other retailers. Some hardware store owners may even be considering opening a new location. What needs to be considered when thinking of expansion? Let’s dive in to 4 things to consider when expanding your business.
Chances are if you are looking to expand, you’re thriving in your current location. Whatever you did the first time around must have worked, so it’s wise to follow those steps when opening a second one. It’s helpful to explore the areas you’re considering and make a list of top contenders. Look at the customers in the area and the competition, and don’t be shy about connecting with businesses and consumers in the area to gauge interest. Be sure to research the required permits and tax codes in each prospective location, too.
You’ve got a built-in customer base that is willing to go to bat for you in terms of brand recognition. Using existing customers as advocates for your business is the best free marketing you could ask for. Be sure to advertise your expansion on social media and through email; this can be done well in advance of opening to ensure as many folks as possible know you’re building a new location. Your grand opening date should be set and advertised early, too. And never shy away from getting to know the consumers on your business’s new turf. Get them excited for your first day by promoting the opening all throughout town.
When opening a second location, it’s important to put someone in charge of the hiring process that you trust. You’ll want to get this process started sooner rather than later so you can have a staff of fully trained employees ready to roll on day one. Consider asking one of your managers or a strong retail associate to help vet candidates to work in your new location. You may even want to pull a few of your best floor staff or cashiers over to pitch in at your second location, at least until all of the new folks are fully up to speed.
You’ve already opened one business location; chances are you remember how pricey it was. Expanding your business is going to take a lot of money. First up, figure out how much money is on-hand for you to invest. Bear in mind you’ll still have your original location to pay for, as well. If you have friends or outside investors wiling to pitch in, great!
To finance the rest of your new location, it might be wise to look toward the loan options available through a lender like ARF Financial. A line of credit might be the perfect solution, which offers 24-hour access to 5 separate loan drafts over a 6-month period. You might also consider a Flex Pay loan that allows you to defer up to 50 percent of the principal into the future for more affordable payments now.
All things considered, opening a second location is an exciting time—you should be proud your business’s growth! For assistance building the perfect loan to fit your needs, head over to ARF Financial today for a free instant quote. We’d love to help fund your success.