Expansion is multiplication. It multiplies what works and what doesn't.
1. Is the current model profitable at the unit level?
A store, a branch or a product line must be profitable on its own after all allocated costs. If the current unit isn't profitable, ten new units only make the loss ten times bigger.
2. What makes your best unit successful?
If the answer is one outstanding individual, it isn't yet a model you can replicate. If the answer is a location, a product mix and a way of operating that have been written down, expansion has a foundation.
3. Who will run the new unit, and are they ready?
This is the most frequently skipped condition. A location can be found in a few weeks; a qualified manager takes months. The right order is people first, premises second.
The safest pace of expansion is the pace at which you can train the people to run it.