This issue of Tobacco Outlet Business addresses the largest chains in our market, The Tobacco Outlet Business Top 50. It is not easy to grow, and growth is not the only path to success, but for those that see growth through unit expansion as the path, this issue will provide interesting insights.
Whether you are opening your second unit or your 50th unit, the view from 10,000 feet shows that there are a handful of common hurdles that every growing company encounters. Here are some thoughts on that process, and for more ideas, take a look at the 50 companies that are profiled in this issue.
As a single unit operator, you are hands on. You are involved in every aspect of your business, and you know every job and you do every job. Going from one unit to that second is a 100 percent increase in what you and your employees need to do. The key to that first expansion is making sure you have trusted and reliable people in place to handle that second unit with the same level of dedication that you applied to your first store.
While you can operate one store without it, you will certainly need a system in place for hiring, training, and customer service. Make a plan for a system, and let the system drive your growth. Write an operational manual and stick to it because the plan, the system, and the manual will need to replace you.
Work with your wholesalers and suppliers to ensure that product, purchasing, and re-stocking is standardized. At the same time, recognize that there may also be a need for store level decisions on products that your new customers want. Manage your product mix and these deviations from the core product mix systematically.
Selecting that next location, whether it is your second or your 20th store, means taking on more real estate. With your first couple of new stores, look for undervalued opportunities and adjust your concept to the space. But as you go beyond the first several stores, start to develop a prototype that works for your product mix and for your customer profile.
Understand what makes your initial location successful and build a brand around those elements. This is more important as your number of stores increase. Good signage, consistent design, and a strong communication effort will allow you to leverage your existing good will and shorten your window to profitability.
Getting involved in your industry by attending the Tobacco Plus Expo every year. It pays to be connected to others in your market. It gives you a chance to learn what is working around the country. It demonstrates leadership, and that attracts good people to bring into your operation. It is also an efficient and effective way to connect with key suppliers and wholesalers.
Remember that it while it is a 100 percent increase from store one to store two, it is only a 2 percent increase from store 50 to 51, so it does get easier, but you need to be smart about that first step.
I wish you good luck and continued growth. •