In the last post, we talked about the positives of opening a second store. As a result of successfully launching your brick-and-mortar store and navigating the roadblocks to finding your perfect customers, you have accurate information about your sales and marketing channels. In this case, it makes you believe you may be ready to expand your company. Having a second location is a big achievement since it signifies that your business has been successfully launched, has developed a steady client base, and has managed enough cash flow to sustain itself. To open a second business location, you need structure, time and money. That's why you should have a plan that addresses each step of the process. Today we will get into the nitty-gritty details on how to open a second business location.

Choose the right location!

The fact that your current business is succeeding has a lot to do with its location. Location is important because it encourages food traffic to your store, which could turn into customers. Putting your store on a major road gives you access to a lot of eyes on your shop windows. Moreover, there are some areas that would be more favourable than others based on their surroundings. A candy store next to the dentist’s office would be a bust. However, in an entertainment area (near parks, cinemas, stadiums, arcades, etc.) your candy store could become very profitable.

  1. Narrow down your potential locations
  2. Evaluate zoning, tax, and permit regulations
  3. Study the demographics, potential target customers and your competition in that area


In terms of your business expansion, the two most valuable assets are knowing what your target consumers want/need because you already serve them and having an established relationship with loyal, trusting consumers. Your current market can be leveraged to advertise your new location when you open a second location since you already have a solid client base. Using social media, email marketing, and other advertising channels, you can spread the word about the new location. Remember that brand recognition is gold in business.


Devise your strategy

Having a business plan is essential. You would have had a plan with your first store, and it should be no different for the second. Assuming your first location ran smoothly, you can model your new location after it, which would help keep the brand consistent between both locations. The business plan is important even if you know exactly how you want it to run because other people will be able to help you operate it. In order to have a smooth operation, everyone needs to be on the same page. In addition, you will need a business plan to be considered by lenders and investors. An effective business plan includes a company description, a market analysis, a list of products and services, and a marketing plan for your new branch. 

Money, Money, Money

Accounts, funding, taxes… All the financial stress is important because without money you can’t make more money.

Separate the expenses of the first location from the new one. It will be easier for both tax purposes and analytics alike.

As with the first location, opening another requires a substantial investment, but unlike the first, you already have a steady stream of revenue that you can use to support the expansion. Calculate your business expenses and double-check that all expenses, such as taxes and permits, are included in your list. 



Despite how hands-on you might be, you cannot operate two businesses at once, so you'll need to hire people to help you run the second location. This includes managers and crew members. It is advised to recruit and hire your potential employees early enough to have them trained for opening day.

Kit out your shop

There is probably no doubt that you have a good understanding of all the equipment, supplies, and inventory needed to operate a second location. You should look beyond obvious items for solutions that will make your business more efficient, such as an easy-to-use point of sale system. Utilizing the same vendors as you do at your original business location will help to maintain consistency in all locations. It can also help you to run a cheaper, more efficient system, as economies of scale lead to better prices.


Thank you for reading this guide on how to open a second location. Creating a detailed plan will help you prepare for the expansion of your business. And you can learn from the experience of your first location to help launch your new venture toward success. Yes, opening a second store can be challenging, but it is also a highly satisfying milestone for your company.

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