When Should I Open a Second Store?

If you own one successful retail business, it stands to reason that owning two must be better, right? Not necessarily. You should only consider opening a second store if you have enough capital to do so and if you see a large enough market to support another location. You should also make sure that the second location is currently underserved by your target market and that it will be easy for future customers to access.

Consider, too, the amount of time your new location will require. If you won't be able to be there often, can you afford to hire the appropriate help? Will you need to extend your inventory? You might carry primarily clothing for adults in one store, for instance, but have a teens' and kids' line in the other. The idea is to make both stores work for you at the same time.

For more on opening a second store, be sure to read When Is the Right Time to Open a Second Store?