Lesson: Expand without expanding your costs

When Kenny Lao, co-founder of Rickshaw Dumpling Bar, a chain of dumpling eateries in New York, thought about expanding his operations into midtown Manhattan, he was struck by the high cost of rent. Landlords in the area ask for $300 to $400 per square foot annually, he says. That means renting out a 1,000-square-foot space would cost Lao roughly $300,000 to $400,000 each year. So Lao got creative: He started up a mobile restaurant.

For a total cost of about $60,000, Lao bought and retrofitted a postal truck and started cruising the streets during the lunch rush. The move seems to be paying off. Since starting up Rickshaw's mobile dumpling shop in September, he says, "sales in the truck are better proportionally than what we get in a bigger store."

Kenny Lao's mobile dumpling truck, which roves around the city, is pictured here at 45th Street and 6th Avenue in Midtown Manhattan.

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Use the Internet to further your reach	Tap underserved markets	Expand without expanding your costs	Become your customer's customer	Profit from your own expertise

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