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 began, it brought about problems for all sorts of businesses. In the same town, businesses closed their windows or devised new ways to adapt to the world. However, the owner of this seasonal shop faced his own issues. One of the key services that attracted customers was gift wrapping, but the fear of the virus caused many people to stop coming in. After enduring months of low revenue, it became evident that the store needed to take action.
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 examined traditional loans but didn’t find the terms satisfactory. Then, as he already had a store brimming with merchandise, equipment, and other valuable items, he opted to explore options that considered these assets. Eventually, he discovered that an asset-based loan offered the best solution. With this option, he could secure the funds needed to keep things rolling and utilize the items the company already possessed as 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.
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