Business expansion is rarely ever a simple process. From examining markets and assessing team capacity to reviewing current offerings, the decision to expand to a second storefront is one that requires careful consideration before any concrete plans are put in motion.
For small-business owners in particular, the addition of another business to manage can significantly strain limited resources and push a business to its brink before it’s truly ready.
As experts, the members of Forbes Business Council are familiar with the decision-making processes that come with building a business. Below, 20 of them share questions business owners should ask themselves before attempting to expand to a second storefront, as well as how that question helps them make better decisions about business expansion.
1. Is my business ready to scale?
One key question to ask is whether your business is ready to scale. Is the product solid, and is the team prepared to replicate the model? Asking this helps ensure you are expanding something that is strong and sustainable. It is also a way to check if the core of your business can support growth. – Ivan Shvaichenko, Boosteroid
2. Can my first location run without me?
Small-business owners should ask if their first location can run without them. Growth isn’t just about sales; it’s about stability. If your people and processes can’t operate without your constant oversight, you’re not ready. A solid foundation makes expansion smart because without it, you’re not growing and just doubling the chaos. – Henry Pershin, BusinessCapital.com
3. Do I have the infrastructure to support a second storefront?
The most important question small-business owners should ask themselves is, “Do I have the infrastructure to support a second storefront?” Just because a formula worked for one location doesn’t guarantee it will work for two. This question should lead them to evaluate whether they have the right people and the right platform in place to effectively scale. – Hany Demian, Praesentia Healthcare
4. Who do I need to pull this off?
It’s important to ask not how, but who. This simple shift in thinking completely changed the way I approach leadership and growth. Instead of asking myself how I’m going to pull off managing logistics, operations, staffing and more, I started focusing on who I need to bring in to solve it and who I can trust to own it. It’s a completely different strategy that gives me more time, more clarity and fewer distractions. – Kristina Fitzpatrick, Paper&Flowers
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5. Am I mentally ready to delegate?
Ask, “Am I mentally ready to delegate?” When I’ve seen small businesses struggle with expansion, it was rarely about funding or market and more about the owner still needing to control everything. If you’re not ready to stop micromanaging, a second location will double your stress, not your success. Scaling starts with trust, simple processes and a mindset shift from doing to leading. – Anton Schneerson, Flacks Group
6. How will a second location impact my margins and customer experience?
Small-business leaders should ask, “Will a second location enhance or dilute my margins and customer experience?” This question forces you to evaluate whether your current model is truly scalable and not just successful. Expansion isn’t just about demand. Like any author knows, it’s nearly impossible to follow a winning debut novel. More than building another storefront, can you replicate the brand and service quality? – Raj Tulshan, Loan Mantra
7. Is there proven demand for my offerings in the new location?
I’d ask if there is proven demand for the product or service in the new location. Too often, expansion is based on assumptions rather than data. Studying local demographics, the competition and customer needs helps validate the opportunity. This question grounds the decision in reality and reduces the risk of overextending. A well-researched location increases the odds of long-term success. – Bharath Kumar Kakkireni, EQUINOX IT SOLUTIONS LLC
8. Are customers coming from far away?
Small-business owners should ask whether customers are coming from faraway areas. A packed first location doesn’t automatically mean your business model can travel. But if there are people willing to go the distance for your product or service, that’s a signal of proven demand beyond your walls. If the answer to this question is yes, then look into the places these patrons are coming from and explore branching opportunities there. – Zain Jaffer, Zain Ventures
9. Why am I actually considering expansion?
Ask why you’re really considering expansion. Is there genuine market demand, easily available funding, or is it just vanity over sanity? Many growth strategies are warranted, but many more are motivated by ego-based reasons. Check for confirmation bias by arguing against this. Consult independent others for advice, conduct a pre-mortem on all that might go wrong and then mitigate any risks. – Nuala Walsh, MindEquity
10. Have I fully maximized my first location?
Ask, “Have I truly maximized my first location before adding more overhead?” If operations, staffing or revenue streams aren’t locked down yet, a new spot might just double your headaches. When your first store runs smoothly and consistently meets its targets, you’ll have a solid playbook to apply elsewhere. This clarity helps ensure a more successful, less risky leap to store number two. – Alvin Kan, Bitget Wallet
11. Is my current business strong enough to support the new venture?
The first question that comes to mind is whether the current business is strong enough to support this jump. Do a cash flow check, as you’ll need enough funds to cover rent and startup costs without breaking the bank. Demand proof by researching if the new area wants your stuff. Examine team capacity to ensure your crew can handle two spots. These strategies will help you expand innovatively, not crash! – Daniel Levy, GovernmentOfficeFurniture.com
12. Can I handle expansion?
Ask, “Can I handle expansion?” Beyond financial and time resource allocation, are you personally ready to grow? That means having a readiness to accept new challenges, be more curious and more assertive in learning. Ensure you’re ready to allocate the necessary resources of time, talent and treasure. – Henry Delozier, GGA Partners
13. Do I need to clone myself to ensure success?
When pondering a second space, determine if you need to clone yourself to make this second location a success. If operations manuals are meticulously detailed and hired staff are able to execute on the vision without the need for cloning technology, then a second location is a wonderful way to expand both community reach and access to goods or services! – Christine S. Ghilain, Brain Health Neuropsychology & Brain Health Consulting
14. Can I maintain the same level of quality at both locations?
The primary question a business owner should ask themselves before opening a new location is whether they can maintain the same quality of product and service at both locations simultaneously. Most don’t have the money, staff or energy to handle both and one suffers. That can hurt your reputation. – Baruch Labunski, Rank Secure
15. Is my team capable of handling increased responsibilities?
The question small-business owners should ask themselves before considering opening a second storefront is whether their team is capable of handling the expansion in terms of increased responsibilities and an expansion in the volume of work and effort needed to succeed. If the right foundation of people, processes and structures is not in place, then the likelihood of the operation stumbling is high. – Matthew Davis, GDI Insurance Agency, Inc.
16. Do I have sufficient resources and the capacity to run two companies?
They should ask themselves whether they have sufficient resources and the capacity to do justice to both companies at the same time and manage them successfully. This helps them to realistically assess their own resources, both financially and in terms of time. It also ensures that the entrepreneur does not jeopardize their existing business success and that the expansion is successful in the long term. – Stephy Beck, femtexter.ai
17. Am I scaling or just duplicating a location?
Small-business owners should ask, “Am I scaling a brand or just duplicating a location?” Expansion should amplify your vision, not your workload. This question forces clarity because if your brand isn’t magnetic enough to thrive in a new zip code without you babysitting it, you’re not ready. Build legacy, not liability. – Arpit Jain, SEO Sets
18. Is there sufficient market demand in the new area?
Before opening a second location, ask if there is sufficient market demand in the new area. This ensures the new location can attract enough customers without cannibalizing your existing store’s sales. Conducting thorough market research helps in making informed expansion decisions. – Beth Worthy, GMR Transcription Services, Inc.
19. What does my competition in the new area look like?
Ask, “What does my competition look like in the new area?” Research the local market to see if there’s room for growth or if the market is already saturated. Understanding the competitive landscape helps you gauge whether your business can stand out and thrive. It’ll guide your expansion decision and minimize the risk of overextending the business. – Sabeer Nelliparamban, Tyler Petroleum Inc.
20. Is my success repeatable or location-specific?
One question to ask is whether their success is repeatable or location-specific. A thriving first store doesn’t guarantee a second will work. Analyze what’s driving success, be it foot traffic, local demand or your personal touch. If it’s not easily replicated, expansion could dilute rather than multiply your results. Growth should be intentional, not just an exciting next step. – Michael Shribman, APS Global Partners Inc.
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