Sometimes, business people are tempted to open up newer branches, especially, when they experience a period of high sales. In the euphoria, they rush to open up newer shops, offices or outlets.
“It’s not time for a new outlet”
Before considering opening new offices, shops or outlets, it’s important to be sure that the existing business is stable enough, else any attempt at spreading out pre-maturely, may lead to losses at both ends.
Here are factors to consider before spreading out:
1. Time factor: How long have you been running the current business? ( This could be a reflection of how experienced you are in the business).
2. Stability: How stable is the existing business (stability here suggests the ability of the business to withstand temporary financial and managerial shocks).
3. Management plan: How do you plan to manage the current business, plus the new outlet, and why do you think your chosen method is the best?
4. Relevance/locations: That some products or services succeeded here, doesn’t guarantee success there. Every new business deserves a distinct business plan.
If your current business or outlet is not stable enough, it’s important you focus on building or making it more stable before opening up newer branches, this is to avoid any unwanted strains that could derail your business goals.