If your expansion hits too many hurdles or fails, it could hurt your existing business. The decisions you make when you branch out beyond your first location can also make or break your dreams for other stores or locations in the pipeline. If expansion is on your radar, here are just some of the elements you need to consider. 

Tune into your new locality

Even if, on the surface, your new location seems similar to your existing business, failing to investigate the nuances of your new market can mean you’re setting yourself up to fail. Customer demographics and psychographics, local regulations, and nearby competitors are just some of the particulars you’ll want to research. 

For example, will your new store have more or less foot traffic? Keep in mind that a store on the street next to a busy train station will attract customers with a different mindset to one in an indoor shopping centre. You might want to adjust your layout, signage or product range accordingly.  

How close will your new store be to any competitors? Are they similar to businesses you’ve competed with in the past or do you need to find out more about them, so you’re prepared to compete with them? 

Set up a consistent experience

As important as localisation is, the reality is your new store will be expanding on the success of your existing stores. And consistency between multiple chain stores is key. That goes for everything from branding, interior design and store layout to hiring procedures, discounting schedules, and refund policies. 

It’s no accident that popular chain stores – whether it’s Sportsgirl, Dusk, Smiggle, Schnitz or Myer – have a similar look and feel across locations. 

Groundbreaking hair salon brand Edwards and Co, now in eight locations across the East Coast, defines itself by a salon aesthetic that defies tradition, as founder Jaye Edwards explains: “My goal when I open every salon is I want clients to say, ‘I could live here’. You know when you go into someone’s house and you see the chillout area, you see the dining table, you see the bathroom.

"I love creating the communal colour tables, everything’s open plan, there’s no walls anywhere, the bathrooms always look beautiful… I really want it to feel like, ‘Hey I could have dinner at that dining table’.” 

So how do you achieve this consistency? Documentation and communication. Make sure all the decisions you’ve made about how your stores should operate are clearly defined in documented policies and procedures.

Rely on the right people

Great people are at the heart of any great business. To focus on your expansion and work out how to manage multiple stores, you’ll need to hand over the reins of your usual operations to staff you can trust. 

Having your policies and procedures clearly documented will help you instill confidence in the team to continue kicking goals without you. Next, you’ll need to start hiring great people for your new location. 

The most important of these is a reliable store manager who is confident, organised and effective under pressure. They’ll be great at making decisions, motivating staff, meeting sales goals, and communicating back to you. Perhaps above all else, they’ll be great at choosing the right people to join the team, which Sir Richard Branson deems “critical”.

“If you choose somebody who genuinely loves people and looks for the best in people, that's critical, and if you bring someone in who isn't good with people then you can destroy the company very quickly,” he advises. 

As a business leader, it can be easy to fall into the trap of thinking you need to be involved in every decision. But if your expansion to multiple stores is going to work – and keep you sane in the process – relying on an amazing team is pivotal.  

Consider cloud-based technology solutions

If you haven’t already invested in cloud-based point-of-sale, inventory tracking and accounting software, now is the time.

Being able to keep track of everything from anywhere in real-time is invaluable once you’re running across multiple retail stores. 

Just think how seamless you can make a customer’s experience if an item they’re looking for is sold out in one store.

With a couple of clicks, you can find out exactly where they can get it and arrange to have it delivered to the store that is most convenient to the customer. 

Or, if someone comes in for a refund or exchange but has forgotten their receipt, your systems can track their purchase history so you can make sure they receive the best possible customer service. 

If you have a loyalty scheme for regular customers, make sure it’s accessible across all stores, too.

Conduct routine reviews 

Finally, set up regular evaluations so you can see how business is tracking across stores. Regular audits, store manager meetings, and secret shoppers are all worth considering. 

It’s also important to keep on top of quality control after the initial expansion. If standards slip in one location, it reflects badly on the entire brand. 

Multi-millionaire founder of Boost Juice, Janine Allis, still considers herself a perfectionist when it comes to the look of her brand’s stores. 

“I always care. If you think good enough is good enough, then it’s all over,” she recently told The Sydney Morning Herald. 

Expanding your business across multiple stores is all about striking the right balance between consistency and localisation. Start by setting up a great brand with effective processes, technology, and most importantly, people, and you’ll be well on your way to success.