The McGraths on Business - Blog #2. Should I invest in multi-unit ownership?

The Multi-Unit Reality: What We've Learned Running Two Signarama Stores. In February 2019, we had the opportunity to purchase Signarama Melbourne CBD, a neighbouring franchise to Signarama Footscray (which is actually located in Yarraville). This meant we had one production facility and two sales offices. We were in a growth phase, and acquiring a second location fast-tracked that journey in ways we couldn't have imagined. But here's what nobody tells you: running multiple sites isn't just "doing what you did before, but twice." It's a completely different business model with its own challenges, benefits, and lessons. Why Multiple Locations? When people ask us about the benefits of going multi-unit, the financial advantages are obvious but often misunderstood. Yes, you save on duplication (one payroll system, one marketing strategy, shared administration), but the real power comes from what that efficiency enables. You can afford better people. With two locations generating revenue, we can invest in highly skilled staff that a single location might struggle to justify. For us, it was a production manager. The flow-on effect is you then have the time and experienced team members to properly train new people, which creates a virtuous cycle of capability. You can grow your business without proportionally increasing your overheads. Our production capacity didn't require doubling our factory size. Smart scheduling and resource sharing between locations means we can handle larger volumes and bigger projects, produced from the same factory. You reduce risk through diversification. This might be the most underrated benefit. Signarama Footscray primarily serves factories and warehousing clients, while Melbourne CBD caters to office space and retail customers. This client diversity makes us far less susceptible to market conditions than we'd be with a single location. When one sector slows down, the other often picks up the slack, making you less susceptible during downturns. You can replicate proven success. Once you've developed procedures, systems, and a winning approach in one location, you have a blueprint that you can adapt for your second location. The experience from location one becomes your training manual for location two. The Reality Check: It Won't Be As Good As You Running It Something every business owner will tell you: no one is as good as you at running your business. If you're expecting your second location to immediately match the sales and culture of your flagship store, you'll be disappointed. This isn't a criticism of your team; it is just reality. You've poured years into building your first location. Your second location needs time, attention, and the right people to develop its own rhythm. The People Challenge: Culture Isn't Transferable, It's Built When you acquire an existing location, you inherit staff who may have come from a completely different work culture with different procedures. This was one of our biggest surprises with the Melbourne CBD purchase. The team we inherited was competent, but they'd been operating under different standards. Customer service approach was a major difference. We have high attention to detail that wasn't previously emphasized. Procedures that had been done one way for years suddenly needed to change. Sometimes these were big changes, sometimes small ones, but for people who don't like change, any adjustment can feel massive. Here's what we learned: staff can feel like they've lost autonomy when new owners come in with new systems. Even if your way is objectively better, they're experiencing loss. It's important to nurture your team through this transition while also standing your ground on the procedures that matter. Our advice: Interview or have in-depth discussions with each inherited staff member early. Share your expectations clearly and your business plan openly. Listen to their concerns, but don't compromise on the fundamentals that make your business successful. We did not do this. Instead, we fumbled along until each issue arose. The Reality of Inherited Teams We inherited five staff members when we purchased Melbourne CBD. For various reasons, after six months, we had two remaining. This kind of turnover isn't unusual when cultures collide and expectations shift, but it's still challenging. One of those who stayed was Don, our salesperson. Don remained with us for five years until he retired in December 2024, and he was an amazing asset to our business. He built strong customer relationships that became the foundation of our CBD location's success. His ability to adapt to our systems while maintaining those crucial client connections shows what is possible when you find the right people who are willing to grow with you. Don's story is an example that while cultural transitions are difficult (there were probably times when Don thought about leaving), the staff members who align with your values and visions for your business can become your greatest advocates. The Non-Negotiables for Multi-Unit Success After six years of running two locations, and discussions with other multi-unit owners, here's what we've learned you absolutely must have: 1. A strong manager at each location. You cannot be everywhere. You need someone who thinks like an owner and can make decisions in your absence. 2. Regular team meetings. We meet with our teams consistently. Communication breaks down fast across multiple sites if you don't prioritise it. 3. Physical presence at both locations. Signarama Footscray location houses our factory and sales office, while Signarama Melbourne CBD is only a sales office. Sales staff move between the two stores. We need to be predominantly at Footscray as that is where most of our staff is. Your staff need to see you, and you need to feel the pulse of each location. Remote management only works if you've built strong foundations first. 4. Close monitoring of reports and KPIs. Numbers tell stories. We watch our metrics closely because early warning signs often show up in data before they show up in conversations. 5. Location-specific strategies. Remember that client base diversity we mentioned? It's a strength, but only if you target each location's audience appropriately. What works for Footscray doesn't automatically work for Melbourne, customise your approach. 6. Neighbouring locations are preferable. When your sites are close to each other, everything becomes more manageable: moving equipment, sharing resources, staff coverage, and your own time traveling between locations. The Bottom Line Running multiple franchise locations accelerated our growth, increased our stability through diversification, and given us opportunities we never would have had with a single site. As shown above, it was harder than expected and sometimes in ways we didn't anticipate. The financial benefits are real. The operational efficiencies matter. But the biggest factor in multi-unit success is people! You need to find the right people that share your culture and vision, when you do, train them, trust them, and continually support them. If after reading this, you're still considering going multi-unit, here's our advice: do it for the right reasons (growth, diversification, opportunity), go in with realistic expectations (it won't be perfect immediately), and invest heavily in your people from day one. Good luck and enjoy the journey! We'd love to hear your stories or answer any questions you might have. Upcoming Topics In future editions of The McGraths on Business, we'll dive into one of the most common questions we get: what's it really like working with your spouse? The good, the challenging, and the strategies that keep us both sane and successful. We'll also share stories about finding hidden talent in unexpected places, building the kind of culture where people thrive, and signage-related information, tips and hints. Want to connect? Find us at Signarama Footscray & Melbourne CBD or follow along with our business journey on LinkedIn.