How-To-Select-A-Retail-Location

One of the most exciting aspects of owning your own retail business is the potential to open a second location. If you find yourself with too many customers to handle and you can afford it, expanding to a new location in another city (or even elsewhere in the same city!) is a great way to enhance your customer base and double your potential success.

 

But opening a new location requires a lot of forethought and planning, almost as much as you had to do when you opened your business for the very first time. If you’re considering a second retail location, here’s a few things to keep in mind while you plan for your expansion:

 

Where Will The Funding Come From?

No matter how successful your business is, the need for financing will always be present. Before you get too far into finding a new storefront and hiring new staff, you’re going to want to secure the financing you need to get a new location, keep it fully stocked, and so on. This can come from a bank loan, you can dip into your personal savings, or if your current location is doing that well you may be able to tap into the cash flow of your current location. Whatever you wind up going with, just make sure you have the money you need before you get too far into your planning phase.

 

What Equipment Do You Need For Your New Location?

Once you’ve gotten your funding and a location picked out, the next step is to figure out how to keep it stocked. Draw up a potential floor layout and figure out what kind of retail storage you might need, such as wire shelving, plastic shelving, or retail storage bins to stock your new location and keep it as well-prepared as your current location. These fixtures should be one of the earliest things you buy for your new location to make sure it’s properly equipped and ready to roll as soon as you open.

 

Where Will The Inventory Come From?

Finally, when your new location is all set up and ready to get stocked, you need to decide where the inventory and products will come from. Do you have enough stock overflow at your current location to keep both locations stocked, or will you have to order all-new inventory for your new store? Are you staying with your current distributor or do you have other options for obtaining product? And do you want to have a lot of product overlap between the two different locations or will they specialize in different selections?

 

Whatever your second retail location winds up becoming, follow these tips and you’ll be off to a good start. And as always, if you have any questions, feel free to contact Shelving.com for product information and advice.

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