Field guidesPart 6 · Scale6.1

How to open a second location

9 MIN READ·7 STEPS·PART 6

Open a second location only when the first runs without you, the numbers per location are documented, supply can feed both, and you have funded the ramp-up period in advance.

A second location doubles your fixed costs immediately and your revenue slowly. The gap between those two curves is what sinks expansions.

The prerequisite is not money. It is a first location that works while you are not in it.

01

Prove the first site runs without you

Written SOPs, a manager, and a month where you were not the bottleneck.

02

Know your per-location numbers

Revenue, gross margin, fixed costs and break-even for site one.

03

Confirm supply

Two locations need roughly twice the inventory, consistently. Check that with your suppliers first.

04

Model break-even for site two

Fixed costs ÷ gross margin. Then assume it takes longer than that to get there.

05

Fund the ramp

Cash or committed credit to cover several months of losses on the new site.

06

Negotiate the lease carefully

Term, options, NNN charges, dock and power. It is the largest irreversible commitment.

07

Hire and train before opening

Train new staff at the proven location, not in an empty building.

Example

Site two at $12,000 monthly fixed cost and 40% gross margin needs $30,000 of monthly revenue just to stop losing money.
COMMON MISTAKES
  • Expanding to escape problems at the first location.
  • Signing a long lease before supply is confirmed.
  • Funding the ramp on a revolving line meant for inventory.

YOU'RE APPROACHING THE EDGE OF THE PUBLIC BLUEPRINT.

When you're here

Your business is ready to buy wholesale.

A Pro account gets you access to inventory. It doesn't automatically come with terms or financing.

Registix Pro →
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