Business Development · Startup

I have two good locations to start my business but no resources to start both at once. Where should I start the business?

Alex Yamai CEO @ Geo-digital IT consults

March 20th, 2018

I have two good locations to start up my business but I don’t have enough resources to start up in the two locations at the same time. One location is vulnerable to competitors in the nearest future but starting as a pioneer will be of great advantage to capture that territory. The second location is secure and has prospects to make more patronage than the first. I would want to establish in these two locations. Where should I start the business?

Alankar Urankar There is no great genius w/o a mixture of madness!

March 20th, 2018

Regardless of the nature of your business, before you start shopping for space, you need to have a clear picture of what you must have, what you'd like to have, what you absolutely won't tolerate and how much you're able to pay. Developing that picture can be a time-consuming process that is both exciting and tedious, but it's essential that you give it the attention it deserves. While many start-up mistakes can be corrected later on, a poor choice of location is difficult-and sometimes impossible-to repair.


From what you say above the 2nd option looks lucrative to have something built in business and go to the place you wish to capture as what works will be evident by your first hand experience.

Steven Fried Founder, CEO, and General Counsel

March 20th, 2018

It may depend on your industry, but as a general rule in the place that is logistically the easiest and least expensive. You want to streamline operations to the extent possible because all of your resources - money, time, etc. - are going to be squeezed as it is.

Chowdari Babu Founder @ ismac.io

March 20th, 2018

we have worked at multiple locations . Some help us optimise cost , some provide client acessibility .


i can help , based on business specific to location

Fouad Assaf Co-founder of Start-ups and CEO of a Ventures Lab entity

March 20th, 2018

Hello Alex, it would be best to start in the more secure location that already have prospects. you will minimize the risk and make sure you have what it needs to prove you business model and find the right market fit for your product.

All the best

Dave Jules Founder and CEO of Underlined Apps

March 20th, 2018

Hi Alex,


You should really consider the following question.


1. Which location has the highest overhead? (The lower one might be best if you are a new business)


2. How many deals do you have closed? (Actually people who have given you money for a service or product, and how many people have at least said they will pay you)


3. Based on deals that have closed, how much revenue can you expect the next 6 months?


I know this might be difficult but it is always a great exercise to do because it helps put things in the perspective. I'm not sure where you are in your business but I always advise having a few clients before taking on large over head. If you are an IT service company, you should have clients and if you are selling any actual products try getting people to buy them online before getting any actual locations.


Also, if you are looking to see if a location has better prospect I always advise spending an afternoon to see if the prospects are quality leads.


Best regards,

Dave


dave@underlinedapps.com


Maxine Pierson CEO, MJ BIOTECH, INC.

March 20th, 2018

Go with the second location for the cash flow. Maxine PIerson CEO MJ BIOTECH, INC. (MJTV)

German Valencia Success is not a goal, it is a life style

Last updated on March 20th, 2018

  • Opening a second business should be the result of being able to successfully manage at least one.
  • You are apening a business to serve people and solve specific needs they have; do the homework to understand what area has the higher need, the one that does most likely will also have the higher willingness to pay
  • Focus on creating value for your customers and how to set yourself from any competition; if you have done the homework to understand market fit and willingness to pay, competition should encourage innovation, if you are worry about being faced out Is because you don’t trust yourself or your understand of the above
  • Cheap is typically expensive, do not take decisióna based on cheap, take them based on a clear understanding of customer behavior, market need, willingness to pay for your products and on always bring innovation and enhancing customer experience. Then be smart about where, how much, what and how you will pay for all your COGS. If you do a good job at all of the above money will be the result and business success will come with it
  • Avoid listening to too many people to the point of getting confused and losing objectivity. Stay focus on what matters
  • Last but not least, clean your bad habits and be a raw model to be followed by all your teams, lead by example, Reward the good work and condemn the bad ones. Get the best people you can hire. A culture is what will make you business be sustainable to the point where you can open other locations.
  • Have a great business journey.


Lowell Ganin Founder, President

March 20th, 2018

It may sound cheesy, but make a pros and cons list for each location. You should then look at what your main business goals are during the lease period and try to match them with with pros and cons of each location to decide which location actually makes sense to setup shop in.

Lionel

September 3rd, 2018

Hi Alex,


Hope you find the best location to start. The second one seems the best approach, but, of course, it depends of the nature of your business.


Lot of our members, at www.MasterMindStartup.com are also asking similar kind of questions to other members of our community.


All the best !


Lionel

mohammed alamoudi Purchasing Manager

March 20th, 2018

Hey, contact me if you are interested in resources.