Where Can I Get Financing?
I recently got this question from a LinkedIn contact and wanted to share it here as well since financing is such a big issue these days. I'd love to hear what financing solutions and creative capitalization ideas you've come up with in your business.
Dear Felicia -
We are in an older strip mall that really does not feed us, though the inside of our facility is gorgeous. (we put our own $$ into the initial build out) Our clients seek us out...We are contemplating moving to a renovated mall down the street but with the current state of our finances in the down turned economy, aren't making a huge profit, so banks are not interested in loaning us $$ for a build out in the potentially new location. Any ideas on how we might obtain funding? (We've heard that the new location owner doesn't have much $$ flow as a result of the remodel) We have been in our city for 19 years and our current location for ten.
Thank you!
Under Capitalized
Dear UC -
My first suggestion is to see if you can work with a company to lease back some of your equipment (microderm, IPL, etc). A bank might work with you on that but there are some spa related leasing companies that might be a better bet.
Other than that, I think it makes sense to look at the situation as a whole and determine if a move is really what makes the most sense to help your company profit. Other solutions could be things like changing or improving your marketing tools, compensation plan or services offered.
One thing to remember in all of this is something you said in your original inquiry. Our clients seek us out. This is something to keep in mind before moving. If they are already finding you where you are, is there really a benefit in moving?
If you do decide a move is in your best interest, I'd also suggest you find out directly from the landlord what they are willing or able to do to help you with buildout rather than working off the rumors you've heard. There are many ways a landlord can help with upfitting a space including reducing rent to offset your costs. You never know if you don't ask!
All in all, I think this question probably deserves a bit more exploration that I can do by email. Let's talk and see how things are now!
Felicia
Do you have a business question for Felicia? Send it to Felicia@spalutions.com or request an appointment for a free initial consultation.
Dear Felicia -
We are in an older strip mall that really does not feed us, though the inside of our facility is gorgeous. (we put our own $$ into the initial build out) Our clients seek us out...We are contemplating moving to a renovated mall down the street but with the current state of our finances in the down turned economy, aren't making a huge profit, so banks are not interested in loaning us $$ for a build out in the potentially new location. Any ideas on how we might obtain funding? (We've heard that the new location owner doesn't have much $$ flow as a result of the remodel) We have been in our city for 19 years and our current location for ten.
Thank you!
Under Capitalized
Dear UC -
My first suggestion is to see if you can work with a company to lease back some of your equipment (microderm, IPL, etc). A bank might work with you on that but there are some spa related leasing companies that might be a better bet.
Other than that, I think it makes sense to look at the situation as a whole and determine if a move is really what makes the most sense to help your company profit. Other solutions could be things like changing or improving your marketing tools, compensation plan or services offered.
One thing to remember in all of this is something you said in your original inquiry. Our clients seek us out. This is something to keep in mind before moving. If they are already finding you where you are, is there really a benefit in moving?
If you do decide a move is in your best interest, I'd also suggest you find out directly from the landlord what they are willing or able to do to help you with buildout rather than working off the rumors you've heard. There are many ways a landlord can help with upfitting a space including reducing rent to offset your costs. You never know if you don't ask!
All in all, I think this question probably deserves a bit more exploration that I can do by email. Let's talk and see how things are now!
Felicia
Do you have a business question for Felicia? Send it to Felicia@spalutions.com or request an appointment for a free initial consultation.
Posted by Felicia Brown LMBT at 1/19/2010 10:13 AM 
Categories: Business Q and A
Tags: office space financing business tips
Categories: Business Q and A
Tags: office space financing business tips
Have you considered applying for an SBA (Small Business Administration) loan to assist in your plans?
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I agree with Felicia that on first cut, you may be better off investing in new business development than relocating. Specifically, look at your business model - are you leasing space, independent contractors, employees, and what are your advertising, marketing and public relations strategies and results. With almost 20 years in the business your brand should be very well established! Seek to add more value for your current customers and their possible referrals by looking at your operating hours, loyalty and referral programs, etc.
Good luck -
Ruth Cox
Bella Fontana Spa
Sherman, TX
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Thanks Ruth. Now more than ever businesses must be willing to change with the times and to "reinvent" themselves on all levels. Nothing is static anymore it seems, and what work last year or even last month may not work today. Increasingly, banks, landlords and other vendors are learning this and are making concessions whenever possible to help businesses stay open. They realize that by being inflexible - by doing "business as usual" they may lose some of their customers permanently.
That being said, l suggest my clients take a look at their services and products to see what is really selling, get rid of slow performers and those that put a drag on your costs, space and/or the amount of inventory you have to carry. Emphasize those tried and true popular offerings and try a few new things that are not difficult or costly to implement. Then do the same for your marketing and advertising and ditch the worst performers that aren't providing the results to justify themselves.
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Get Finance is crucial issue for start business.
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