Been a long time lurker here, but first time posting.
I run an extremely popular alterations and tailoring shop in my home town. I’ve promoted someone to management and through her and my team we’ve seen a lot of upward growth even with Covid. We see about 15-20 brides a week, and about 10-20 people a day for alterations.
We’ve capped out our team capability, but I have 1 more unused machine that could be utilized to increase throughput.
One of the most popular alterations shops down south of us by about 15 miles in another upscale small city area closed their doors 2 years ago. The owner retired, not for lack of work. So my question is this:
If you were in my position, would you consider opening a small (300-500 sq/ft satellite location with a staff of two, using our popularity and reputation to drive business?
My goal would be to outfit a pressing and steaming area and move or purchase one to two sewing machines to have some work and tweaks done on premises. The lion’s share of the work would be carted back to our main location where management can confirm QA, with pickup of finished satellite garments happening at the satellite location.
By my estimates based upon analysis of prior years and adjusted for inflation we should realize income that doubles operating costs yearly.
What would you do in my position? Hire one more person to increase throughput and maximize income or expand to a new area?