Successful small retailers invariably are tempted to test the adage "more is better." While the expansion allure is more than many can resist, it must be tempered by the realization that many hidden challenges await the unsuspecting entrepreneur.
Success of the new organization will require not only more but a different kind of effort than used in managing the single store. First, successful operation will now depend on delegating operating decisions to professional managers. The autonomy given these managers is a complex decision and may be placed anywhere within a three dimensional continuum depending on the desired image, supervision, and buying patterns for each store. Second, the accounting information required for proper control and performance evaluation of the organization will increase dramatically.
Adequate pre-expansion planning can expose many of the hidden challenges and make the transition one more likely to prove that more is, in fact, better.
Bitner, Larry N. and Judith D. Powell. "Postexpansion Planning Considerations for New Multioutlet Retailers." E.C.R.S.B. 86-11. Robins School of Business White Paper Series. University of Richmond, Richmond, Virginia.