When times are good, let the capital dollars flow! 

Developing and constructing new locations for a multi-unit operator is perhaps one of the most gratifying events in the overall health of the chain.  Spending capital to continual grow the business means the chain is building for the future and the prospects are good.

Following a well-thought-out process will position your capital dollars with the greatest opportunity for success.  Now is the time to position your capital for the best possible returns and you have many choices in deploying your capital, so it’s imperative to use it wisely.

Building stores follows a sequence of events that methodically needs to be followed to minimize disruptions.  Here is a high-level list of mileposts that need to be accomplished to ensure your project is delivered on-time and on-budget:

Planning & Development:   First on the list is a feasibility study to see if this is even a viable site.  Market research and locating the land to be acquired for the site help round out the plan.  At this point, a preliminary budget can be developed and a financial planning proforma should help clarify whether the site should be considered. 

Design Phase:  At this point, initial sketches and concepts are developed including the layout, dimensions, and building systems.  Generally, CAD-CAM renderings of the floor plan and mechanicals are all put into place and modified with the marketing/operations teams.  A set of Design Intent drawings are created and distributed to contractors for bidding and construction.

Pre-Construction:  It is never too early to apply for permitting as some municipalities can take months to approve your project.  You should also be able to pull the trigger on hiring your General Contractor (GC) and line up all your subcontractors.  In some cases, it may be necessary to do extensive site prep and demolition and this should be accomplished here so the site is prepped and secured for construction.

Procurement:  One thing that COVID taught us is that the supply chain on equipment can be completely out of our control.  So, it is imperative to precure all the building materials and equipment well in advance to minimize disruptions to construction.  It is also a good time to begin scheduling subcontractors and laborers based on project timelines.

Construction:  Now the fun begins – three-dimensional building takes place!  The foundation gets poured; structural work begins; then exterior work like roofing, windows and walls are completed; followed by all the interior work, drywall and installation of mechanicals.  There are inspections galore during this stage so managing not only the workflow but the approval processes are critical to keep the project moving.

Post-Construction:  At this point, you should be working around the edges knocking out punch list items (a punch list is a final walk-through to identify and fix any remaining issues).  Fire up all the mechanical items and see if they are properly working and eventually get your final inspection and occupancy permit.  If all goes well, you are open for business!

Ongoing Facility Maintenance:  Lastly, a brand-new store is beautiful but putting a plan in place now to schedule ongoing services like maintenance, warranty follow-up, or upgrades is as critical to keep the store looking as good in two years as it is right now.

Construction projects are exciting for any enterprise but can quickly become a challenge without proper project management.  Stay one step ahead in each of these steps and you will find that not only your project flow is seamless, but you will minimize capital dollars spent.  After all, the reason we spend capital is to improve our return on investment.

Want more ideas?  For more information on Gray Cat Learning Series, visit: https://www.graycatenterprises.com/gray-cat-learning-series