The first site took three years to fill. The second is budgeted for nine months.

Replicating a location looks like a cost exercise. It is almost always a demand exercise, and the difference decides whether site two pays back or quietly funds itself from site one.

By Steve 5 min read
Abstract bridge artwork for The first site took three years to fill. The second is budgeted for nine months.

A second site is the most seductive growth plan available to an owner-managed business, because the model appears already proven. The first location works. The costs are known to the pound: rent, fit-out, headcount, equipment. So the plan gets built as a cost plan, with a revenue line reverse-engineered to make the payback acceptable. And the revenue line almost always assumes the ramp will be faster the second time. Sometimes it is. But the reason site one took three years to fill is rarely the reason the plan assumes. If…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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