Expansion from a single site to multiple locations can be one of the most powerful ways to drive revenue, reach new markets, and increase a company’s brand visibility. But the venture can be as tricky to pull-off as the initial start-up. Hands-on owners will quickly recognize the challenges of being unable to be in two places at once. Nevertheless, like many other things in business — when there’s a will, there’s a way and those willing to take on the risk of expansion can see a big return.
Below we interviewed three local business owners that have successfully navigated the experience of launching and managing a second, third, & even eighth location outside of Frederick! Here’s what they had to say about their growth experience:
The Temple: A Paul Mitchell Partner School
Sharon and Charles Riser have launched two locations (Annapolis and Frederick).
How did you know when your business was ready to expand?
We reviewed our leads and demands for those looking to attend a school closer in that area. It showed us that we had a need to fill and we were losing business due to not having a second location in the State of Maryland.
What’s the most challenging part of managing a business with multiple locations, and how have you adapted?
We are lucky! There are two of us, so we have been able to be at one of those locations knowing that the other partner is there at the other.
The most challenging piece is how to keep the systems and guidelines constant. If you can not replicate those you will struggle to inspect and train. Many members of our team go between both locations so that needs to be a smooth transition when they go to the other location.
What has been the most positive aspect of expanding to multiple locations?
We have been able to increase our revenue as a company and be able to reach a much bigger market that had a demand for our services. If we have team move further from one location or a student it allows them to be able to still work or attend school thru our transfer program.
What advice do you have to business owners considering an expansion?
We would suggest thinking about the below:
- Do you have a demand for your business in another location? If not, what will that cost look like to spend to market in a new area for that new location?
-Personally and professionally, what will the impact be on your life along with your family, and team in your current location?
- Does any team in your current location that has reached their full job potential ready to go to the next step in their career? This next location could open up more leadership or regional roles for them. This helps you keep long term team that is ready for the next challenge just like you are.
Smoketown Brewing
The Blackmon family have launched two locations (Brunswick & Carroll Creek), with a third location coming soon!
How did you know when your business was ready to expand?
We knew Smoketown was ready to expand for a couple different reasons. Primarily, we expanded due to local interest out of our Brunswick location, hearing comments from customers that they would be very happy and patronize us if we opened in Frederick. And they have. Also, our demand for wholesale and can sales pushed our production space to its limit.
What’s the most challenging part of managing a business with multiple locations, and how have you adapted?
Logistics provides the biggest challenge when opening a second location. Coordinating materials, staffing, timing, etc. can be a challenge. Fortunately, we are only separated by 20 miles between locations, so impact is marginal in this regard. Supplying both locations can also provide its own challenges, but time and experience has solved this issue.
What has been the most positive aspect of expanding to multiple locations?
We are very pleased to be able to expand our brand and exposure through multiple locations. Brunswick's location is a bit limiting, but has its own following. Support is heavy from N. VA and WV. Expanding to Frederick has opened up more corridors for us including Montgomery County, Baltimore, DC, and PA.
What advice do you have to business owners considering an expansion?
Anyone planning to expand in any type of market should really be prepared to focus on a new marketing area, adapting to their new customer base. Focusing on logistics is equally important when it comes to adjusting to dealing with materials, staffing, weather, etc. Being able to circulate between locations easily and efficiently is key to a smooth process.
Rehab 2 Perform
Dr. Josh Funk has launched eight locations (Annapolis, Bethesda, Columbia, Frederick, Gambrills, Germantown, Mt. Airy, & Tysons Corner), with more coming soon!
How do you know when your business is ready to expand?
The word traction first comes to mind. When you've developed enough traction to create positive trends as it relates to customers served AND belief amongst your team, it could be a sign you are ready to expand. Each of these areas is extremely important to ensuring that there is a demand for your services and/or products, and that you have the people in place to embrace the expansion. Expansion is not easy, and buries many companies, so it is extremely important that your team is aligned with the direction of the company.
What’s the most challenging part of managing a business with multiple locations, and how have you adapted?
Communication. The internal and external communication channels for your business have to be transparent and efficient amongst your customers, and your team. We have established clear cut guidelines as it relates to communicating: what needs to be communicated, how it needs to be communicated, and through what modes of communication. This has been a difference maker for us as we have grown over the past few years. Platforms such as Slack, G-Mail, Internal & External Newsletters as well as Social Media, all come to mind.
What has been the most positive aspect of expanding to multiple locations?
I'd have to say the opportunities that it has created, and will continue to create, for our team. With expansion, comes an increase in audience. For our business in particular, our patients served each year continues to exponentially increase, as well as our online presence. Through each of these different avenues, we are able to provide more opportunities for our team to create career pathways, and this is something that I take great pride in. I want R2P to be a dream factory for professionals.
What advice do you have to business owners considering an expansion?
Creating abundance starts with you, and much of that is centered around your mindset. I am a big believer that the leader must lead self first, before they can lead a team. This demands continual self-reflection, troubleshooting, and a network of amazing humans in their corner to help guide you on your path.
Considering an expansion at your business?
Contact The City of Frederick’s Department of Economic Development at business@cityoffrederickmd.gov to access resources and assistance throughout the process!