Wake up and smell the profit. 97But, we’d taken our eyes off the profitability of the first shop
since we didn’t have good enough systems in place and
consequently its profitability dropped a little to £30K. We didn’t
get the new one quite right since it took a while to build up a
reputation and persuade our new customers how great we were,
so we only made £15K there. Net result £45K and a whole host of
new problems.We did have nicely massaged egos through, and people told us
we were great for having such a “little goldmine”. So it was okay,
wasn’t it? For the answer to this may I refer you to item number
one!Expanding into new sites can very often work, but only if you are
really prepared and have fully exploited all the profit opportunities
in your first site.
Have you exhausted catering?
Does your existing site run effortlessly without you being there?
Do you use your lists properly?
Are you open as often as you could be?
Do you use all the marketing tricks in the bag?
Have you utilised all available space on your current site?
If the answer to any of the above is “no” then you really need to
make sure opening another site is not an ego based decision and
that you will absolutely, definitely be better off with two sites and
not just one.