Julian runs a boutique pottery studio, Clay & Fire, in the inner-north of Melbourne, Australia. He offers evening classes to beginner hobbyists and weekend masterclasses to advanced potters. The studio currently runs eight sessions a week. Following three years of high profitability and consistent waiting lists, Julian is considering expanding his business by leasing a second studio premises in the southern suburbs of Melbourne.
With reference to the context above and your knowledge of economics, analyse two possible factors influencing Julian's decision to expand his business by opening a second pottery studio.
