If you’re wondering “How can I grow my business”, and considering opening a new location to do so, you have a lot of research ahead of you.
There might be a few reasons that you’re considering opening a new location as a way to grow your business (and if you haven’t, maybe you will now), such as:
- You’ve identified an un-served or under-served marketplace, and you want to fill the void – and reap the profits.
- You want to reduce a competitor’s market share – particularly if they’re stealing your current and future customers.
- You want to achieve economies of scale, since buying inventory for multiple locations typically means you can get a better deal and/or friendlier payment terms.
- You want to mitigate the risk of one location sending your entire business into a tailspin if it has a particularly bad few months or quarters.
- You want to win over more business from enterprise-level customers, and having multiple locations adds to your capacity and profile.
Those are just a few reasons how opening a new location can help you grow your business, and understanding how to make that happen can often make your head spin. With so many considerations, we’ll at least help dig into some of the most important ones.
Costs of Expanding to a New Location
One of the most important considerations when thinking about financing to grow your business is around the costs involved. Beyond just the additional rent, lease or mortgage payments, utility bills and insurance premiums, here are some costs you may not have considered:
- Renovating the new location or taking care of necessary leasehold improvements. This can include both interior and exterior upgrades.
- Advertising and marketing costs, to let customers in your new service area know that you’re “open for business”.
- Recruiting staff to work in the new location – which may be tough to do (read: cost more than you’d like) in marketplaces where the demand for qualified talent is high.
- Installing equipment, and setting up networks and telecom systems.
Who should I borrow from to grow my business?
This is often one of the most difficult decisions for any small or medium sized company looking to grow their business. How do you know who to trust? What should you look for in a lender? As a first step, here are some things to think about:
- Should you get a secured or unsecured loan?
- Do you want to go for a short term or long term lona?
- What else do we want to include here? We might be able to work in some of this additional info up here.
The Bottom Line
As you can see, a business line of credit gives you the security in knowing that your expansion plans won’t be delayed – or worse, derailed – because of extra costs. And again, unlike a bank loan, you only pay interest on the amount you borrow – so there’s no risk if you end up needing less cash than you anticipated.
Call Mulligan Funding at 855-326-3564 to discuss your financing options today!