What considerations should we use to decide on a second location?
A: When you first start out and are successful, it usually is because you found a niche that was underserved in your area. That's entrepreneurism.
The question continued, "We're considering open a second location in another city about two hours away."That is very dangerous because if something goes wrong, that's a long slog to fix that store.
My number one recommendation is it should be no more than 20 or 30 minutes away. So that that way if something happens, you can get across town. You can do something.
I know several retailers who follow me here, Deanna and several of you who have a number of stores that you've built, like, along the coast of a state and only about a half hour drive from each other. That all works.
The danger when you're two hours away is you really don't know that market as well. You can be impacted by traffic. How are you going to follow up? And the other thing that most people forget is when you open that second store, it's not like you can suddenly magically be two people - your attentions will be split into two.
So if you're the one that's doing everything yourself, you really want to have a system involved underneath it that says, 'Okay, if I can't come into the store for a month-trucks drive on the freeway, just sayin' - how would the store continue?' And that also means you better have a great training program. You better have a hierarchy of who does what. It better be written out, spelled out, trained, and managed to and held accountable.
Sometimes we want to open a store because of the opportunity without really thinking about, 'How would this impact my life?' If you lost 30% of time with your family, would that be devastating? "That would but I'm still gonna open it."
Just understand you'll be losing at least 30% of your focus on your first location which could jeopardize its' original success.
I just say prepare and plan to succeed or don't plan and you fail.