6 Things to Do Before Building Your Business into a Chain

By | May 13, 2015

Although some people are satisfied with maintaining a single small business, others strive for greater rewards by expanding the company beyond the single location. If you’re excited by the profits your single business provides, imagine how you would feel if you had several establishments providing you with a residual income. Creating a chain isn’t difficult, but there are several aspects to consider before setting up shop in other locations.

Location Research

Not every location is going to be ideal for your business. Competition, property values, local income levels and even the community mindset could all contribute to the success of a business. Surveying the populace of the location could help you determine if expanding into the area would be ideal or if the business would struggle. Even if your business is unique to the locale, it doesn’t mean that the community will be willing to spend money at the establishment.

Sustainable Budgeting

Each location needs to sustain itself without the assistance of the other establishments. If an expansion location is losing money by staying open, that is less profits available for future investments and employee benefits. A sustainable budget needs to be developed that can optimize income and keep the business in the black.


Although you can get loans and investors to help with the costs of establishing multiple locations, it may be best to refrain from such. Should the location fail, you could be accountable for a large financial debt. The primary business should try to absorb as much of the expenses for expanding as possible in order to reduce the need for third-party funds. This not only reduces your monthly expenses from loan interests, but it’s money that the business should be able to lose without putting the organization in jeopardy.

Delegating Responsibility

Once the chain begins to form, you need to be able to delegate responsibilities. You can’t be everywhere at once and having that chain-of-command can be greatly beneficial. While you’re governing over the expansion, you’ll need supervisors that can maintain the other locations while you’re away. The more establishments you create, the more intricate the process will become as the workload for various departments will increase.

Explore Cloud Technologies

Cloud technologies can keep your multiple locations connected to the main office without extensive network hardware installations. For the most part, all that is needed is a fast Internet connection for each location. This can reduce costs while keeping your organization up-to-date in regards to application development and online capabilities.

Local Licensing

One of the most important aspects to consider is that of local licensing. Depending on the type of business you operate, you’ll need to adhere to laws that may be different for each city and state. For example, liquor stores go through a grueling process of licensing for each establishment that absolutely needs to be adhered. This includes taxes, mandatory employee benefits and inspections by government officials depending on the business.

People such as Ian MacKechnie have made a great deal of success for themselves by striving to achieve a greater result from multi-location businesses. Although it may take more than a decade to establish several business locations, the rewards could be lucrative beyond your expectations. Although not all locations will provide the same level of success, you could turn your small business into a state-wide, household name over the course of time.