For retailers with one location, opening a second store is
usually the most logical path to growth. Although they had always
planned to open multiple locations, the Gibbses investigated other
growth options, too. They decided against franchising because they
felt the costs would be too high for potential franchisees. They
also ruled out distributing other lines of pet products because
they feared they'd have trouble selling to their competition.
After weighing all their options, they decided opening another
store was the way to go.
If you take this route, you need to open your second location
far enough away from the original site so that new customers will
shop there. After all, you don't want your second location to
cannibalize your first. For the Gibbses, that meant opening their
North Kansas City, Missouri, superstore 20 miles away—and
across the state line-from the original store. Their third
location, in Eastern Kansas City, is also about 20 miles away from
its nearest sister store.
"Finding locations that are in the right areas has been a
[concern] for us," says Carolyn Gibbs. At approximately 30,000
square feet apiece, sufficient distance between locations is a
prominent issue.
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Another concern is hiring a good manager for your second
location. As an entrepreneur, it will probably be hard to
relinquish even a little control over your business, but you
can't be two—or more—places at once. The experts
say it's important to find a team player who shares your vision
and enthusiasm for the business. Look for someone with creativity,
innovation and problem-solving abilities.
When you decide to open a second store, sometimes it makes sense
to change the focus of the products you carry. For example, if you
own a dress shop, you might consider having your second store
specialize in related accessories. This will expose your first
store's product lines to your new shop's
customers—ideally without negatively impacting the first
store's sales.
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