Am I Ready To Open a Second Store?

In the world of retail business, more stores translates into more money. This is why so many successful retail entrepreneurs own multiple stores. When you have several different stores under your belt, you'll have different sources of passive income, which is exactly what some owners strive for. But how do you know if you're ready to venture into a second retail store?

Business owners should think long and hard before making the decision to open a second store. If it's not done right, it could turn into a downwards financial spiral that eats up more and more money. When all of your resources are being allocated towards the second store, your original store gets neglected.

Experience

You shouldn't even think about opening a second store until you've had multiple years of experience running the first. Far too many owners open one store after another without gaining basic fundamentals of the process first. Stick with one store, master it, and then you can move on to a second store.

Get comfortable in your position as the owner/manager at your first store, because you'll need plenty of experience here before moving on to a second store. One of the biggest mistakes owners make is rushing the process, which ultimately hurts them in the long run. Perform your job duties to the best of your ability and really strive for excellent with your store. Using this same format in future stores will increase your chances of success.

First Store Success

This is probably common sense to most people, but you should only open a second store after you've experienced success with the first. Go over your store's financial records to determine when it became profitable and for how long. Ideally, you should wait until your first store has turned a solid profit for at least 2-3 years before jumping into a second store.

Capital

Opening a second store requires a fairly significant amount of capital. You'll basically have the exact same expenses as your first store's opening with the exception of a select few items. Either hire a professional account or personally go through your business's financial documentation to determine whether or not you have the capital necessary for a second store. You can always apply for business loans, but the high interest rates oftentimes make them a poor decision.

Employees

Of course, you'll also need a handful of employees to help you open a second store. The good news is that you can oftentimes pull some workers from your first store to give you a hand at the new store. Even if it's only temporary, they can help you find and train new employees at your second store.