Growth is exciting. We can take what’s working and do more of it for increased profit and cash flow. Adding a location is one way to do this. A new location is a major commitment of time and money with the potential to expand our business and increase our profit.

A new location doesn’t always go how we planned, though. Sales come in much lower than we thought. It cost us more to open the location than estimated. It’s pulling more resources from our existing operations and strategy than anticipated. Could we have better anticipated this?

In this course, We:

  • Explore some of the key financial considerations when opening a new location.
  • Describe how to project common revenue and expense items for a new location.
  • Explain how to build a net contribution and cash flow forecast.
  • Illustrate analysis methods like breakeven analysis and scenario analysis.
  • Demonstrate scenario analysis and sensitivity analysis with Excel’s Goal Seek, Scenario Manager, and Data Table functions.
  • Define common metrics like NPV, IRR, and Time to Breakeven. I’ll show multiple ways to analyze this in Excel. For Excel gurus, you can do this yourself. For others, this gives you an idea of what an accountant, analyst, or consultant can do for you.
  • Reveal common decision mistakes people make when analyzing new locations and how to avoid these mistakes.

There’s a lot of thought and research about adding a location that goes far beyond the scope of this course. This course is focused on the financial analysis of the location and how a new location fits financially into your larger strategy. Here are some things I don’t cover or don’t cover in detail:

  • Merger and Acquisition (M&A) Analysis: The desire to add a location often flows from a growth strategy or from the opportunity to add locations. I’ve analyzed organic growth in addition to mergers and acquisitions. Sometimes M&A is leveraged with organic growth. In this strategy, the company enters the market by purchasing a smaller company and adds locations from there. Analyzing M&A would be a whole course by itself, so I’ll focus on organic growth.
  • Analyzing where to locate the store.
  • Detailed financial accounting entries and financial statement disclosure.
  • Tax considerations and treatment. I will briefly mention some relevant tax items like cost segregation studies.

Note:This course is also available in Video-based format.

Learning Objectives
  • Identify key revenue and expense items for a new location analysis.
  • Recognize sources of information for new location projections.
  • Discover and recall analysis metrics like Net Present Value (NPV), Internal Rate of Return (IRR), and Time to Breakeven.
  • Recognize Excel What-If functions like Goal Seek, Scenario Manager, and Data Tables.
Last updated/reviewed: March 23, 2024
9 Reviews (31 ratings)


Anonymous Author
Excellent topic with alot of information contained in the text based course. I did find the reading cumbersome though, looking to winnow out the key points in the 70 pages. The key takeaways at the end was a good idea, just not very well prepared either.

Anonymous Author
Instructor did a good job of covering the process for analyzing whether to add new locations; information was clear and well organized

Anonymous Author
Great course. A lot of very useful and insightful information and tips for analysis. Much different than most accounting CPE courses.

Anonymous Author
Good overview, good instructor, covers what you need to know without wasting time with unnecessary subjects

Member's Profile
Very helpful outline of many planning and evaluation structures and tools for new business opportunities.

Anonymous Author
Course if well laid out with great explanations, examples and descriptions.

Member's Profile
That was so awesome. Good examination and questions to make me think

Anonymous Author
Well laid out source materials. Comprehensive approach to the topic

Anonymous Author
Well organized content laid out in a logical manner.

Course Complexity: Foundational
No advanced preparation or prerequisites are required for this course.
Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
  Analyzing Whether to Add New Locations - Capital Budgeting (Text Based Course)PDF
  Course ResourcesPDF