Many businesses have lulls at times. When it comes to seasonal businesses, this is even more prevalent. That was something that the owner of a small East coast retail business was warned of several times before starting his company. However, his passion for the holidays was enough to keep things going well for several years. He incorporated cards, decorations, and other items for different holidays to do his best to keep money flowing throughout the year.
When COVID-19 started, it caused problems for all sorts of businesses. In the same town, businesses shuttered their windows or found new ways to adapt to the world. However, the owner of this seasonal shop had his own issues. One of the most essential services that brought people in was gift wrapping – but many people stopped coming in over a fear of the virus. After months of low revenue, it was clear that something had to change.
Several different ideas were considered in terms of how to increase revenue. Eventually, it was decided that a mobile gift-wrapping service might work. On top of that, the store had always been mainly in person, and that wasn’t working. So it seemed like the right time to create an ecommerce website and start taking orders from customers near and far. The only problem was financing those needs. It was going to take around $200,000 to get company vehicles and create a top-notch website.
First, the owner looked at traditional loans but wasn’t happy with the terms. Then, since he already had a store full of merchandise, equipment, and other items with monetary value, he decided to search for options that took those things into consideration. An asset-based loan ended up being the best option. He could get the funds he needed to keep things rolling and use the items already in the company’s possession as a form of collateral.
It turns out that the two significant changes the company made were enough to turn things around, even in the face of a pandemic. The home gift wrapping service was a hit but what really changed things was offering online orders. People across the country who love the holidays were quick to start ordering all their favorite wares. By the time everything was in place, the small shop was now making more money than it ever had before.
Valerie has over 16 years of experience as a professional writer of blogs, eBooks, articles and press releases, with a focus on finance and alternative lending. Valerie resides with her family in Texas and is passionate about her horses.
