Thinking About Expanding your Business?

Are you thinking about expanding your business? There are two very important things to consider. Consistency of your “brand” and choosing the right location.

 First, let’s talk about your unique brand. Your brand is your public image, your reputation. If you have multiple locations, your brand should be consistent at each one.

 Do you have a “mission statement”? Your mission statement should detail what you hope to provide your customers and community. Make certain everyone on your staff is on board and fully understands your mission. An excellent way to be certain you’re understood is to have your associates repeat back what they believe you are out to accomplish.

In order to have consistency in multiple locations, you will need a “bench”, like in sports. These are people who fully grasp the nature of your business and are ready to bring that commitment, ability and knowledge to your next site. Promoting from within is always advisable when you’re able to do so.

Developing new management is best accomplished by empowering people to make decisions. When presented with a dilemma or question by one of my staff, instead of providing an answer, I would ask the question “What do you think we should do in this situation?” Typically, the answer would be appropriate and I would then empower that individual to make like decisions without consulting me in future. I assured everyone that no one would ever be in trouble for making a decision. If after the fact, there was any issue, a constructive, non judgmental conversation might take place. Too few businesses empower their employees to solve issues on the spot. You can be sure customers will appreciate a fast solution and your staff will appreciate being entrusted to make that solution.

 Here is a quick story about how I empowered my people and explained our return policy. A customer comes in and buys a plastic hamster home. The same customer flies to New York City, takes the hamster home to the top of the Empire State Building and throws it over the side. They go back to the street, sweep up the remains, fly home and bring the broken pieces back to you in a paper bag. “Oh my! What happened here?” you ask. “Well, I threw it off the Empire State Building”. I would allow my staff to replace the item and add, “Here is another one. They’re really not meant to withstand being thrown off the Empire State Building. That’s not a good idea.” You’re  a good customer to your distributor. They should have no issue in allowing you a credit after you both have a good laugh about the damage. Allowing for an unconditional return policy is typically insignificant to your bottom line.

 Selecting good real estate is imperative. I would always look for locations that were in close proximity to other businesses that provided for “daily needs”. Somewhere people shop often. Busy grocery stores were my preferred targets. Most customers shop for groceries on average of three times a week. The closer the better. If there is directory signage available, take it! If possible, add a co-tenancy clause to your lease. That says if a major tenant moves out and your business suffers, you can operate at a reduced rent and possibly even opt out of your lease after a given time period. I also like free standing locations. They typically have good signage, good visibility and lots of parking.