‘You have to think bigger:’ a checklist for expanding your business

Your customers are traveling hours for your services. Your space is packed to the brim with people. It’s becoming more difficult to keep up with demand. You’re browsing real estate listings in your free time. Is it time to open a second location for your small business? 

This is the spot Misty and Dennis Akers, owners of The Candle Pour, found themselves in after opening their first location in Tampa. Their custom candle-making shop filled a gap in the market for memorable experiences in Florida, and as demand surpassed their small space, they began planning for a second location in St. Petersburg.

“You have to think bigger than the shop,” Dennis said. “We knew from day one that one location wasn’t going to serve what we wanted to do. You have to have multiple locations feeding into this [business] to grow it the way [we] want to grow it.”

But before Dennis and Misty could take the next step toward expansion, they had to develop a scalable brand and business model—plus assemble a team of employees and contractors able to execute their vision. Below, they share key questions they asked before knowing they were ready to open a successful second location.  

Whether you’re ready to sign a second lease or planning for the future, this checklist can help you prepare for the next step in your entrepreneurial journey. 

Can your first location run without you?

Before mass-producing a product, the prototype needs to be solid. The same goes for your business. The more streamlined and defined your brand and business processes are, the easier it will be to recreate your “secret sauce” at the next site.

How did Dennis and Misty know they were ready for expansion? The business was functioning efficiently without them. “The word I would use is ‘well-oiled machine,’” Dennis said. “With that second location, you need number one to be running and be pretty self-sufficient.”

If your location isn’t at that point yet, that’s okay—learn more about building a business that can run without you. 

Is there demand for a second site?

Before you take the next step, collect feedback from your most important stakeholders: your current customers. What do they like about your business? What don’t they like? Would they visit a second location or recommend it to friends and family? 

Misty and Dennis said they received an overwhelmingly positive response in their first year—and even heard from visitors who begged them to open in nearby towns. “People would come in and be like, ‘What franchise is this?’ or ‘How many locations?’” Misty said. Once it became clear that The Candle Pour offered something unique, which they could bottle up and take to new markets, the Akerses felt even more confident in their plan for expansion.

Market research doesn’t require money or even a formal conversation: You can also glean insights like this from analyzing your Yelp reviews. 

Does your target market frequent the area?

Location can make or break your business, especially if you’re in an industry that relies on foot traffic. Carefully consider your target market when scouting for a new location: Do your ideal customers frequent the area? Does the location’s personality or aesthetic match the vision you have for your business?

The Akerses wanted to keep their second location close to home in Tampa—and St. Petersburg was the largest nearby market. Plus, they’d received confidence boosts from their customer base in St. Petersburg, who were regularly traveling the half-hour by car to visit them. 

Another aspect to consider when signing a lease is laying groundwork with your future neighbors. For example, Dennis and Misty worked with a landlord they trusted to find a space that would contribute to the neighborhood’s revitalization. They eventually decided on a storefront in the Hyde Park neighborhood for its close-knit, village feel. “We’re a good anchor tenant to bring more business to surrounding businesses, so it should definitely be a factor when [our community] thinks about us,” Dennis said. 

Pro Tip: Talk to a commercial real estate agent to find office properties available in your area or browse a site like LoopNet for commercial listings.

Do you have the right partners to execute your vision?

Building out a second space is one of the most expensive and stressful parts of expansion for most entrepreneurs. However, if you plan ahead and find the right contracting partners to execute your vision, you can avoid costly construction delays and set yourself up for success.

At The Candle Pour, Misty and Dennis learned early on that renovation requires patience and collaboration. Their storefront required custom woodwork pieces, including the bar where guests create their signature candles. According to Dennis, it was worth paying more for high-quality work to ensure everything was up to their standards. “You don’t want to go in guns blazing and the next thing is something’s off in the space and people have a bad experience. That starts to spread,” he said. 

Putting your business in another’s hands can be risky, so make sure you do your research and take time to find the right contractor for the job.

Is your team on board and on message?

With more ground to cover, you’ll likely need to hire additional staff. Staffing up is also an opportunity to streamline your brand, since ultimately, your people are your brand. The Candle Pour’s uniform—Converse sneakers and matching aprons—helps the team look cohesive, but what really sets them apart is their human touch, and that can’t be easily replicated. 

The Akerses achieved this by instilling their first hires with their own expectations and encouraging them to mentor the next cohort of employees. “I’m hoping that what we’re doing is teaching them for their careers—if they stay with us or if they’re moving on—is just the discipline of being a good employee,” Misty said. “And I think most of them have a lot of pride in what they do. Every candle that goes out needs to be perfect. Every experience should be a great one.”

Interviews by Emily Washcovick

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These lessons come from an episode of Behind the Review, Yelp & Entrepreneur Media’s weekly podcast. Listen below to hear from Misty, Dennis, and Emily, or visit the episode page to read more, subscribe to the show, and explore other episodes.