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The operations of a business often demand hard decisions. As an owner or manager, you may have to make difficult decisions with respect to many elements of your business. You need to manage your finances, making sure the lights stay on and you can continue your day-to-day operations. You need to manage your personnel and ensure that they are competent in their performance and that there are no unnecessary distractions, such as personal conflicts between your staff.

And your business may develop in ways that can obsolete or make impractical what once seemed like an important focus or element of your business. An example of such a change involves the Franklin Street Bakery. They have operated a wholesale and retail bakery operation for a decade. 

 

For a business like a bakery, a retail counter can be an important way to spread the word about your products. For Franklin Street, their wholesale side has also been an important part of their business and has become so important that they have made the difficult decision to close their retail counter and use that space for the growth their wholesale business has experienced.

They could have moved, purchased or leased additional space in another location, but that would bring the added complexity of new equipment, additional legal or regulatory compliance issues, supplying and transporting product from two locations and increased complexity overall.

No business wants to disappoint a portion of their loyal customer base. However, sometimes because of an evolution of the business, the owners have to make a choice. That choice should be based on a full review of all of the costs, from additional real estate acquisition, zoning or other regulatory approval to the need for new employees.

These types of decisions are always complex and never become easier, but you can feel more confident if you make them from a position of being fully informed as to the cost of each of your options.

Source: startribune.com, "Loring Kitchen, Franklin Street's retail counter to close," Rick Nelson, December 2, 2015

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