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Opening a New Location? Consider This

Trying to figure out whether or not you should open another location? Well, here’s an excerpt or two from an Inc.com article on the subject. My, my, how timely, eh? The article had some good pointers.

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“You have a reliable person to run the second location.

Since opening a second location is actually more like starting up an entirely new business, Loos believes it’s important that the owner is present during the early stages of the second location to help it launch.”

I agree with this, to some extent. If you have a manager or member of your executive team who is passionate about the business and, you surmise, needs a continual challenge to stay fully engaged, by all means have that individual go open up the new location. But don’t abdicate. Provide clear goals, expectations, and guidance at the outset and be available to support him or her as needed or wanted.

“You have sufficient cash flow.”

Open up a new location when you have the operational or financial cash flow to do so. If you are expanding rapidly, you may be generating insufficient operational cash flow to support physical expansion. But if that new location is strategically vital to your company’s objectives, then you may have already tapped a bank line of credit, investors, etc. to support your rollout. If not, do so. Sometimes new locations do become self-supporting within a month but that’s rare. Be prepared to lose money the first 6-9 months by ensuring you have sufficient business cash flow from another source. That way, you or your team won’t feel compelled to pull the plug right before the new location takes off.

For more thoughts on opening a new Location, check out the article, When to Open a New Location on Inc.com.

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About Tiffany C. Wright

Hi! I,Tiffany C. Wright, am the author of the ebook, "Help! I Need Money for My Business Now!!" and the book "Solving the Capital Equation: Financing Solutions for Small Businesses", available on Amazon. I am the president of Toca Family Business Services, a short-term & project-based interim management & strategic and financial advisory firm, located in Atlanta, Georgia. In the past five years I've helped small and medium companies restructure and obtain over $31 Million in financing and a similar amount in purchase orders and contracts. I have an MBA in Finance and Entrepreneurial Management from the Wharton School of Business at the University of Pennsylvania and a B.S. in Industrial and Systems Engineering from The Ohio State University. Personal: I enjoy investing. I am a prodigious reader of everything from business books, magazines, and newspapers to horror and popular fiction. I read 4-6 books per month. I also love to travel. I've been to 33 countries on 5 continents and lived in Japan for 2.5 years and aim for a foreign locale twice a year. I am also an athlete and run track on the Master's Circuit. The highlight was placing 7th in my age group in the 2007 World Master's Track and Field Championships in Italy.

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The Resourceful CEO, Tiffany C. Wright

the president of Toca Family Business Services, a strategic and financial advisory firm which provides short-term & project-based C-level management. She is the author of Solving the Financial Equation: Financing Solutions for Small Businesses, available on Amazon.

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