Important Considerations for Opening a Second Location

second location, new location, expansion, Illinois Small Business AttorneyAs a successful business owner, you understand the hard work and dedication that your company’s profitability has required. You have put in the long hours, worked tirelessly to understand your customer’s needs, and then dedicated yourself to meeting them. So, what now? I hear similar questions quite often from many of my clients, as they have reached a level of success with their business and are thinking about opening a second location. Such a move can be extremely profitable, but it can also be potentially dangerous.

When considering a second location for your business, there are a number of concerns that you must address. Doing so can help you understand more clearly if a new location is wise business decision or an overly optimistic daydream. A qualified business planning lawyer can help you through the decision-making process so that you can be fully prepared to take the next step.

Can Your Existing Location Run Without You?

For many small business owners, the answer to this question may put an end to the discussion about a second location. If your business is dependent on your physical presence and involvement, either due to customer relationships or the day-to-day activities of the company, a second location would likely require the same things from you. You must determine if you will be able to dedicate the necessary time and attention to both locations to ensure continued success.

Do You Have the Money for a Second Location?

Opening a new location may seem like a relatively simple expansion, but it may be best to treat it like a new venture altogether. The second location should be able to become successful, regardless of the existence of the original location. Secure an appropriate source of funding that is not dependent on your first location’s profits, whether it is your own savings or a separate bank loan.

Consider Other Options for Expansion

Before committing to a second brick-and-mortar location, you must be sure that a demand exists for your products or services in the new area. You must also be sure that a new location is best way to fulfill that demand. Your existing location may be able to expand its reach by building or expanding website services, by hiring additional staff or by purchasing more delivery vehicles.

There are many more factors that can help you decide on opening a second location for your business. As with any business decision, careful planning and risk evaluation are the keys to improving your company’s future. If you are considering expanding your business with a second location, the help of an experienced Naperville small business attorney is invaluable. Contact the Gierach Law Firm today and get the help you need for all of your business planning concerns.