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4 Questions to Ask Before Opening a Second Business Location


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Opening additional premises is a sure sign of business expansion but is it the right move for your small company? The extra overheads will need to be offset against the expected upturn in business – it’s a delicate balancing act with an opportunity for real grown but also with a risk of it all going pear-shaped. Before you’re ready for a second business location, you should evaluate the situation carefully and get affirmative answers to these 4 key questions.     1. Is your current location returning a healthy profit? Use your existing business location as a starting point to see if the financial indicators are showing a good performance. As a rule of thumb, you’re looking for at least 6 months’ consecutive profit generation with a healthy, positive cash flow. The higher the level of profits achieved, the more confident you can be that the business is doing well and that a geographical expansion won’t put a spanner in the works. However, make sure that you take a longer-term view to allow for seasonally based or other short-term spikes that could distort the picture. An expansion is often hailed as the way to achieve greater business growth, however, if....

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