When the first shop is doing well, a second branch naturally comes to mind. But many people open a second shop and find that both have become weak. That's because what ran in the first shop with the owner present doesn't run in the second. Following this checklist greatly reduces the risk.
Step 1: Does the first shop run without the owner?
The most important question. If the first shop's sales or accounts fall apart when you're away for a week, fix that first. You need:
- A trusted manager
- A daily cash close
- Clear responsibilities and permissions for staff (Staff management guide)
- A way to see sales and cash remotely
Step 2: Decide with numbers
- Whether the first shop's net profit has been steady over the last few months.
- How much the new branch will need for rent, advance, fit-out and the first stock.
- The new shop may take a few months to become profitable — whether you have the money to cover expenses until then.
Read up on cash flow first: Cash flow management.
Step 3: Location
- Too close to the first shop and your own customers get split.
- Too far away and supervising it and sending stock get difficult.
- Near a market, bus stand or college — where there's a lot of foot traffic.
Step 4: Stock planning
Rather than keeping a lot of separate stock in both shops, it pays to send stock from one branch to the other as needed. But for that you need a record of every stock transfer by IMEI — otherwise you lose track of which phone is where.
Step 5: Cash and accounts separate, reports together
Each branch should have its own cash drawer and sales accounts — that way you can see how each branch is doing. At the same time, the owner needs a combined report across all branches. PhoneSell Pro's multi-branch works exactly this way.
Step 6: The same installment rules in every branch
Down payment, number of installments, customer verification — keep the same rules in all branches. Otherwise one branch's loose rules raise defaults for the whole business. (EMI business model)
Step 7: If you take a partner, put everything in writing
Many people take a partner for a new branch. Who put in how much money, who owns what %, how and when profit will be shared — put it in writing from the start. Read: profit sharing in a partnership shop and the Partner feature.
The checklist in brief
| Item | Ready? |
|---|---|
| First shop runs without the owner | ☐ |
| Steady net profit | ☐ |
| A reserve for a few months of expenses | ☐ |
| A trusted branch manager | ☐ |
| Stock transfer by IMEI | ☐ |
| Branch-wise cash and reports | ☐ |
| The same installment rules in all branches | ☐ |
Final word
A second branch can double your business — if the system is in place beforehand. Bring the first shop onto a system, then grow. If you have questions, contact us.
