--- title: When Should You Open Up Another Location? description: If you're interested in growing your business, a new location might seem like the next step. 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If you're interested in growing your business, a new location might seem like the next step. These tips can help you decide if it's time. ![GoSite](https://www.gosite.com/hubfs/gositelogo.png) GoSite Mar 18, 2020 5 min read ![GoSite](https://www.gosite.com/hubfs/gositelogo.png) GoSite Mar 18, 2020 5 min read ![featured_image](https://www.gosite.com/hubfs/Blog/Images/December%20Campaign/3%20Core%20Features%20Your%20Lead%20Management%20Software%20Needs/3%20Core%20Features%20Your%20Lead%20Management%20Software%20Needs-1-1.jpg) Fresh paint, new neighbors, a brand new window display. It's easy to get caught up in imagining a new location for your business.  But can your company sustain multiple locations? It's a big—and risky—leap to take. A new location could pay off handsomely, or leave you stuck with higher overhead and more staff members.  Read on to learn four signs that opening up a new location is the right move.  ## **When Business Is Booming** Opening a new location might lead to more revenue. But before that happens, only one thing is certain: A new location **will **increase your overhead. Before making the leap, consider whether you can afford it.  Costs associated with a new location add up fast, including: - Rent - Utilities - Paying additional employees - New furniture - Cleaning supplies - Inventory ...just to name a few. It may take a while for your new location to be fully up and running. Along with startup costs, you'll face higher recurring costs as well. Be honest about [whether your cashflow can take the hit](https://www.inc.com/guides/201108/when-to-open-a-second-location.html).  Not there yet? That's okay. One way to prepare for a new location is to focus on [improving your conversion rate](https://www.gosite.com/blog/4-ways-local-businesses-can-increase-their-conversion-rate?hsLang=en-us). Healthier sales can help you bring in cash faster, and support your new location once it opens. ## **When You Have a Trusted Team** Face it: You can't be in two places at once. Until someone invents a watch like the one from *Clockstoppers*, even the best business owners can only do one thing at a time.  As a small business owner, you're probably used to being involved in every detail of your daily operations. Opening a second location is an exercise in letting go. You'll have to get comfortable with delegating tasks from a greater distance. This process becomes much easier once you've built a team you trust. Opening a new location presents a great opportunity to promote a current employee. After all, a trusted current employee knows your business inside out, cutting down on training time.  Or, if you decide to lead the new location yourself, promoting a manager will keep your original HQ running smoothly. The goal is to create consistency across all your locations.  With a great manager in place, you can focus on bringing new team members into your organization. [Hiring is competitive](https://www.gosite.com/blog/the-small-business-guide-to-hiring?hsLang=en-us), but before long, you'll have the team you need. ## **When There’s Ample Demand** If you're excited about the prospect of a new location, it can be hard to face hard facts. But it's important to take an honest look at reality. Is there enough demand to support a new location for your business? There are plenty of signals for high demand, including: - Long lines or wait times at your original location - Inventory that regularly sells out - Robust attendance at in store events - A dedicated fanbase on social media Not hitting the mark yet? Don't worry. Your business might just need more time to develop before you're ready to expand. Review your [customer journey map](https://www.gosite.com/blog/the-modern-consumer-journey?hsLang=en-us) to identify how you can better connect with patrons. If there isn't enough demand to support multiple locations, that is also perfectly fine. It's better to focus on building a thriving home base than undermining your business by stretching it too thin.  ## **When You’ve Tested the New Location** Making the decision to open a new location can feel like getting ready to go skydiving. Even if you're confident in your preparation—and your parachute—there's still a tingle of fear. What if something goes wrong? If you're feeling anxiety or uncertainty, know that the choice to open a new location doesn't have to be black and white. There are plenty of ways to [test out new neighborhoods](https://www.americanexpress.com/en-us/business/trends-and-insights/articles/business-ready-second-location/), such as: - Participating in holiday markets - Establishing a pop up installation - Hosting events in new venues - Partnering with an already-established business (Ex. A housewares vendor could sell a collection of mugs at a coffee shop) A series of temporary locations can help you test the market for your business. If one location clicks with your audience, you'll know where to rent your next permanent space. If you're really feeling lost, your CRM software might hold the clues to your next spot. Try [segmenting your audience by location](https://www.gosite.com/blog/5-audience-segments-to-target-with-crm-marketing?hsLang=en-us) to see if any locations jump out. If, say, half of your audience is concentrated in one neighborhood, your next location might be a no brainer.  ![Multiple locations](https://www.gosite.com/hs-fs/hubfs/Blog/Images/December%20Campaign/Free%20(and%20Inexpensive)%20Marketing%20ideas%20for%20small%20business/Free%20(and%20Inexpensive)%20Marketing%20ideas%20for%20small%20business-3-1.jpg?width=792&name=Free%20(and%20Inexpensive)%20Marketing%20ideas%20for%20small%20business-3-1.jpg) ## **CRM Software Helps You Manage Multiple Locations** If your growing business checks all the boxes, congratulations! A second location can spread your message, grow your customer base and drive more revenue than ever before.  As you scale your operation, it's important to have strong digital systems in place. CRM software can help you: - Keep track of new customers' information - Send out promotions and announcements - Pinpoint strengths and weaknesses in your customer journey - Map where your audience lives - Coordinate project management across multiple sites Ready to get started? Check out [GoSite's Contact Hub](https://www.gosite.com/contact-hub?hsLang=en-us) to learn the ins and outs of CRM software today! ![Comment](https://www.gosite.com/hubfs/bubbles-chat.svg) 0 Comment ![GoSite](https://www.gosite.com/hubfs/gositelogo.png) GoSite ![GoSite-2-1](https://www.gosite.com/hubfs/Imported%20images/GoSite-2-1.svg) Does Your Business Need a Website? [ GET STARTED ](https://www.gosite.com/getfoundonline?utm_source=Blog720&utm_campaign=Website&hsLang=en-us) ![Group 12 (2) (1) (1)](https://www.gosite.com/hs-fs/hubfs/Group%2012%20(2)%20(1)%20(1).png?width=340&name=Group%2012%20(2)%20(1)%20(1).png "Group 12 (2) (1) (1)") ### Keep Reading [ VIEW all articles ](https://www.gosite.com/blog)