Consider legal issues, which is especially important if you expand to a new state or country. Talk to an attorney about different workmen's compensation, labor, licensing, liability and tax rules. The bottom line when opening a new location is to plan-plan for necessary funding, understand what is likely to be your best location, make sure essential systems are in place, know what marketing must be done, and develop the management abilities you and your employees will need. Ninety percent of our restaurants' success comes from what we do prior to even opening the doors. This person is tied to a firm's success or failure.
Some businesses fall into the trap of viewing new branches almost as competitors.
With a new location, expect to spend more time at the business and traveling between locations, at the expense of time spent with family and personal interests. Benefit from economies of scale Recognize that when expanding, you can often benefit from economies of scale and quantity discounts. Raquel Ramirez, owner of three Simply Irresistible women's clothing stores, initially accepted the prices she was quoted by vendors. As her business grew, she realized she could get better prices by negotiating because she was buying in greater volume. Sims expects to save 5 to 10 percent on food costs when his new location opens.