09
February
2016

3 Tips to Maximize a Business Working Capital Loan When Opening a New Location

Many small business owners face a key challenge once their business reaches a certain point: they either have to “go big, or go home”.

That is, they realize because they’re either not generating enough revenues, or because they see the potential to dramatically increase revenues – or usually a combination of both – that they need to open a new business location. It’s a strategic business necessity, because going into “maintenance and consolidation mode” isn’t an option.

If your small business is approaching this inflection point or has reached it, then be assured that this is a VERY positive development. In fact, it’s one of those “nice problems to have”.

However, knowing that you need to grow is one part of the story, as is getting the business financing you need by receiving a business working capital loan. But you still need to know precisely when you should expand, and identify where your next location should be.

To help you address this challenge, below we highlight 3 tips to maximize your business working capital loan when opening a new location:

Stabilize your existing location.

You can’t wait until your current location is running 100% smoothly – i.e. every problem is solved, every challenge is tackled, every employee is happy and every customer is delighted – before you expand, because it will simply never happen. It’s not in the nature of business (or life in general!) for the stars to align perfectly, and if you choose to wait until everything is ideal, then you’ll be waiting…forever.

Yet with this being said, it’s wise to ensure that there are no major issues or problems with your current location before expanding. You want things to be reasonable and realistically stable, so that you can focus on putting your new location on track to succeed as generate ROI as quickly as possible.

Find the right people for your new location.

Even in employer-friendly labor markets, you shouldn’t assume that finding the people you need will be easy or quick. Of course it could be both, but you don’t want to count on that – because if it’s neither, then you’ll have a longer than necessary (or possibly even longer than feasible) path to ROI.

As such, start your recruitment well in advance of opening your new location –having access to a business working capital loan will definitely help here. Even if you don’t have new staff ready and able to start immediately, you want to have a functional staffing contingent (i.e. enough people to move the business forward) in place within a matter of days after taking possession of the new space.

Learn if market trends are in your favor.

Demand for your product or service in a new location may be on the rise – but is this a temporary trend or a long-term reality? Obviously nobody has a crystal ball, and it’s impossible to know with absolute certainty what the market will look like a year from now; let alone a quarter. However, you want to look ahead and choose your new location in a marketplace where demand is expected to grow; especially since other competitors may be attracted to the same area. Naturally, you can use your business working capital loan to launch a marketing and advertising campaign to announce your arrival, and generate plenty of attention, buzz and new customers.

The Bottom Line

Expanding your business is an exciting development: one that you should be looking forward to, because it means that the next phase in your small business is about to unfold. Maximizing your business working capital loan will help you manage this evolution, and put you on track.

Call Mulligan Funding at 855-326-3564 to discuss your financing options today!

The information shared is intended to be used for informational purposes only and you should independently research and verify.

Note: Prior to January 23, 2020, Mulligan Funding operated solely as a direct lender, originating all of its own loans and Merchant Cash Advance contracts. From that date onwards, the majority of funding offered by Mulligan Funding will be by Loans originated by FinWise Bank, a Utah-chartered Bank, pursuant to a Loan Program conducted jointly by Mulligan Funding and FinWise Bank.