Growth & Organization

Branch / Second-Location Expansion Break-Even

Find out what revenue and overhead a second location actually needs to pay for itself.

Fixed startup cost$, one-timeIncremental overhead$ / yearExpected branch revenue$ / year, at full rampContribution margin%

Viable, but a longer payback24.2 months to break even

Net annual value$74,400

Monthly net value$6,200

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GuideBranch Expansion: The Break-Even Nobody RunsA second location is a bigger bet than a second crew: $150,000 to start, $180,000 a year in new overhead, and 24 months to break even even when the case is viable, not strong. Running the cash-runway math before signing a lease is what turns a viable case into a survivable one.

Methodology

Formula: net annual value = expected branch revenue × contribution margin - incremental overhead. Months to break even = fixed startup cost / monthly net value.

Assumption: the same steady-state math as Next Crew Break-Even, scaled up, with an 18-month "strong" payback threshold instead of 12, reflecting the larger scale and slower expected ramp of a new physical location.

Limitation: for adding another crew without a new physical location, see Next Crew Break-Even instead.