Making one into two (sites) work for you

Fleurets divisional director James Davies; an experienced leisure property advisor, shares his tips for opening a second on-trade site.

One of the (many!) highlights of being a leisure property adviser is helping someone buy their first business and watching it flourish. For many owner-operators pro-fit is not the main motivator, it is the challenge of creating a success from scratch.

Here are some practical tips about setting out to buy a second site:

Style of trade​

The blueprint of your current business success has been perfected through trial and error and this magic formula should be respected when looking at a new site.

Location​

Is the next site in the same type of location as the first? Different factors could contribute to its success and there are many “white elephants” where even top operators have failed. You may find there needs to be an adjustment in the plan to allow for local quirks.

Competition​

There is no better way to learn than through watching your competitors; getting tips and improving your business though their mistakes is probably your cheapest tool! Sometimes the large chains are ignored, but is it worth remembering they have spent millions perfecting their products.

Cash flow​

While business A is successful, you are about to double your exposure. The new site will be hungry for your time and investment so you will need to have an accurate budget to ensure cash flow.

Staff​

You will need to ensure the original site doesn’t suffer while you focus on number two. Experienced and trustworthy staff will be a minimum, so it may be worth giving key members a stake in the business to retain loyalty and focus.

Advice​

Making sure you receive the best advice is a vital part of your plan. Trade professionals will guide you through minefields of leases, ac-counts and contracts. Signing onerous terms at the start of your new business could mean you have failed before you even start.

The future​

The step from one to two sites is a giant one and most successful operators tend to have one eye on the next stage of their business. Two sites is manageable with the right staff, but if your goal is more ambitious then a larger company could mean a head office — so more staff and associated costs.