Embrace the challenges of expansion
You decide to invest in your dream and set up a coffee shop. The joys of a startup: the inspired feeling, moving in, the grand opening, your first customer. A little way down the road, you’re deciding it’s a little cramped and really, you could do with a little more time off.
Up until now, you’ve had complete control of your business and when your head starts spinning with the thoughts of delegating responsibility, payroll, HR responsibilities and multiple locations- terrifying is an understatement.
More than one cup
Opening a new location is a huge investment – are you ready? Plus, who’s going to run the second shop? Using your accountant’s business planning services you simulate hiring a new member of staff and opening the new shop to see if and when it would be a good idea.
This month is a big no go, after your unexpected expense of that new coffee machine, your cashflow isn’t looking too strong. Next month looks good to take on that extra member of staff and you’re likely to have a busy February, so opening the new shop in March is looking like your best bet.
Still, you think, is it a worthy investment? Your accountant has been monitoring the KPIs important to you. They provide you with the average profit you make per cup of coffee and your average footfall, with that information, a second location becomes an obvious choice. You’ve decided to go for it.
Double your orders
Delegation is a scary concept. Placing the trust of your shop in the hands of your new employee is frightful, to say the least. So, you visit the second location at least once a day, but the toing and froing is exhausting – your new employee was meant to give you more free time! Your accountant suggests putting bespoke alerts in place with them, by monitoring the important data closely, they can contact you if necessary.
Soon enough, that very thing happens. With one shop, the stock that went to waste wasn’t a large amount and so wasn’t damaging to your revenue. Your accountant is alerted that now you’re in two locations, your waste has more than doubled and the amount of coffee you’re making is too little compared to your stock orders.
This is having an effect on your cashflow and could see a negative turn if the problem isn’t tackled. By reassessing this data, you’re able to optimise the amount of coffee beans you buy – happy days.
Now double your profits
A year down the line, the second store has been a massive success. You decide to open another store but, funding’s a little short. Are investors an option? Your accountant assures you they can put together some reports that will win over your potential investor.
Expecting a history report and some future predictions, you’re surprised with the results. With forecasting tools, they put together a fully fleshed future view of your business. Additionally, they’ve simulated your expansion to a third shop, using predicted data and actual data from the opening of your second shop. Your investor grins, data-based proof that their investment would be worthwhile – what more could they need?
Moving from one to two businesses is a big step. But staying static and never growing is almost as scary a prospect. Whatever you need to get your business moving, we’ve got a solution.