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Archived - Do's and Don'ts of Growth by Duplication

Plants that just sprouted out of the soil

Plants that just sprouted out of the soil

Plants that just sprouted out of the soil

Do’s and Don’ts of Growing Your Business by Duplication

One of the most common ways to grow a successful business is by duplication, which means taking your current business model and replicating it in other locations. Here are some important Do’s and Don’ts that will increase your chance of success and help you avoid common mistakes. For more tips, read MOBI’s article on “ How to Grow a Business Through Duplication.


  1. Stay in the business that you know about.
  2. Stay within geographical limits you can service well.
  3. Prove profitability and systems before expanding.
  4. Bring in your lawyer for all real estate transactions.
  5. Build out one market area at a time.
  6. Verify that your name, logos, and slogans are available.
  7. Compartmentalize your P & L's to individual stores.
  8. Calculate P & L's frequently for each store.
  9. Establish a real estate site model.
  10. Pay fair rent for a great location.


  1. Over borrow. Maintain 3-5 times cash flow-to-debt service.
  2. Pay great rent for a fair location.
  3. Risk duplication if you are the sole key person.
  4. Be in a hurry...instead, proceed with great caution.
  5. Overlook the importance of operating manuals.
  6. Let leasing agents negotiate your leases.
  7. Overlook the importance of demographics.
  8. Be vulnerable to Website-based competition.
  9. Give stock to managers: share the profits instead.
  10. Sign a lease without including recommended deal points.

Sign up for MOBI’s free online course “Business Expansion” to get even more guidance on how to expand your business.

Aug 21, 2017