Hire Power

Second Helping

How do you know when it's time to expand your business to a second location? Rick Davis, CEO of CCG Venture Partners LLC, a Houston firm that specializes in helping single-location businesses expand to multiple markets, suggests a five-point test.

1.Do you have the desire to make the effort, take the risk, and own a business that you don't personally operate? "Owning and operating a business is very different from owning a business that someone else operates for you," Davis says.

2.Is your business performing well financially? If your first location isn't doing well, chances are a second one won't, either.

3.Do you have the know-how to own a business that you don't operate? "This requires an entirely different set of skills," Davis says.

4.Is your existing business running smoothly? Consider how much time your business requires; be sure that you can realistically take time and energy away from it to focus on a second location.

5.Do you have the money? Opening a second location takes initial capital as well as operating funds. Davis recommends having sufficient cash resources to get you through a worst-case scenario.

Like this article? Get this issue right now on iPad, Nook or Kindle Fire.

This article was originally published in the September 1997 print edition of Entrepreneur with the headline: Hire Power.

Loading the player ...

Want to Get Rich? Know How to Diversify Your Investments.

Ads by Google

Share Your Thoughts

Most Shared Stories

1
8 Slow, Difficult Steps to Become a Millionaire
2
What I Learned From Being a Broke, Unemployed Graduate
3
Want Media Attention? Target Trades First
4
50 Favorite Online-Marketing Influencers of 2014
5
It Takes 3 to Run a Business