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Café Management
Story by Ed Arvidson
Expanding Your Business Empire
Most people who start a business, dream about building a business empire. After
all, who wouldn’t want to be the next Starbucks? As a consultant, I’ve always joked that
if I could have a dollar for everytime I’ve heard someone say that they intend on opening
multiple stores, I’d be a millionaire! In reality, many people find that one store is plenty
to deal with. But, should you be considering expanding your operation, here are some
things to think about.
First, you should never consider opening additional locations because your first
store isn’t profitable, or is only barely profitable. If you haven’t been able to build sales
or master the fundamentals of managing your business, then a second store is likely to
only create additional challenges that might result in the collapse of both. You’d be smart
to tame one “alligator” before you consider taking on a second!
On the other hand, if you are highly profitable in your first store (15%+ margin of
monthly profit), and your level of return is consistent, then you might well be justified
in thinking about expanding your business.
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