Financing the Expansion of Your Business

0 1

Retail and food high street businesses are notoriously hard to run, due to many factors that include staff turnover, poor management, high overheads, and low cash flow. All of these problems can grind your business and its expansion to a halt, and are some of the worst nightsmares faced by business owners.

Some entrepreneurs can not face the stress and tensions created by the shortages of cash flow in their business, and decide to cut their losses by selling everything. What they do not know is that there are some things you can do before getting to that stage in order to finance a new venture, whether it is an expansion or refurbishment.

This is especially true for businesses that have managed to establish themselves in a particular location, or have found their niche market just weeks before they got letters from the bailiffs! One of the solutions to these problems is one that ensures your business remains open to the public and continues generating revenue:

If your business is viable, and you have an established set of customers, you might want to explore the option of sale & leaseback. Many high street retailers do this once, twice, or even on a regular basis, so they can finance an expansion, whether it is a refurbishment that will attract new customers, or an expansion that will see you open some additional stores.

By selling the property and remaining the tenant, you are able to keep your customer base, and they will never notice anything apart from the fact that the place looks much better with a refurbishment! You will there before not have to take the risk of moving your business to a new area, finding new customers and investing in marketing and staffing efforts.

The sale and leaseback process is not recommended for every single business, but in many cases it has helped owners with their ventures. The sale and leaseback model can also be applied to many types of properties other than retail shops and cafés, such as homes, industrial concessions, land, pubs, leisure centers …

Source

Leave A Reply

Your email address will not be published.