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As the business owner of a successful franchise, you may be wondering how to increase profits.
One of your options is to open a second franchise location, which leads to the big question: “Is NOW the right time to expand your business?”
“Is there a ‘right’ time?”
The short answer is that there is no “best time of year” to open a second franchise location — or any business, for that matter. The answer ultimately depends on the current success of your first location, and the surrounding economic climate in your area.
The goal is to open your next location at a time of year when business is in full swing, minimizing the chance of facing a string of cash-flow interruptions that could ruin your new location in a matter of months.
If you own a seasonal business, your strategy may be different than a franchisee whose success or failure isn’t dependent on the climate. Certain industries will want to open immediately before a big season, whereas others may have different months during the year that are busier.
Consider all of the potential outcomes (and seasons, if applicable) that will be the most profitable to establish the best time of year to open your next franchise location.
If you’re feeling unsure as to whether or not right now is the best time to open a new location, there are a few questions you can ask yourself to make sure you aren’t rushing head first into a less-than-ideal situation.
Answer these 7 questions about the current state of your business to determine if now is the best time to open your second location:
If your answer to all of these questions is “YES,” then there is a great chance that NOW is the best time to open your second location!.
Now that you’ve answered all of these questions, you can create a more solid strategy for what opening a second franchise location will involve in terms of timeline and costs.
So, what will you need to make it happen?
Here are the top five things you’ll need to open your next franchise location:
As you already know from opening your first store, you will need the proper funds, location, time, staff, and mindset in order to launch a new business.
Every franchise business will require a set amount of funds in order to start, run, and succeed. The amount of money you will need will range depending on your unique niche and franchise. Keep in mind that you will also have to pay for real estate costs, franchise fees, employee payroll, startup services, and initial investments, not to mention any unexpected costs that arise during the beginning phase.
After answering the questions in the previous section, you now have a better sense of how much time and capital you’ll need to open your second location.. Keep in mind that things can change, so be flexible with your deadlines and come up with backup plans to ensure things run as smoothly as possible.
The best time to open your next location is when you’re both personally up to the challenge, and financially ready to grasp your opportunity.
If you read this article and felt like you have everything you need in order to successfully launch your new business, then right now is the perfect time to open a second franchise location!
If you’re still unsure, call one of our expert franchise advisors at (877) 482-3008 for a free consultation, and ask them if now is the best time to open your new location.
Or, if you’re ready to open your new location ASAP, check out National’s franchise funding program: funding options designed to help franchisees get the funding they need to open a second location.
Simply fill out National’s 1-minute application to get started, and receive funds in as little as 48 hours.
National Business Capital is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.
Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.
We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!
Joseph Camberato, CEO of National Business Capital, developed a passion for business at a young age. Joe started his company in 2007 in his spare bedroom and has grown to secure over $1 Billion dollars in financing for small business owners nationwide. National’s team has an amazing culture and has been name the #1 Top Workplace on Long Island 3 years in a row and counting. Joe is a trusted financial expert who’s published more than 2,000 articles in the last 3 years. His articles have generated over 5 million page views and has been featured on blogs such as Google News, Yahoo, CNBC, Forbes Magazine, etc. His passion has also inspired him to build the "GrowByJoe” YouTube channel where he shares his insights into small business trends and tips for growth. Joe also holds a seat on Forbes Finance Council and is an active member of the Young Presidents' Organization (YPO), a global leadership community.