How to Handle Business Growth


Business growth is a good thing but it can also create challenges. In this case, being able to accommodate the additional customers was becoming tricky. As things continued to progress and it was clear things weren’t going back to the way they once were, the owners decided to look into their options.


After considering various options, it was clear that a second shop was the best option. Not only would it accommodate additional people, but it could go in another great location and create a more accessible solution for people on the other side of town.


The Cost for a Second Location


Once that was decided, the next question was how much it would cost to build a new location. There were many different factors to take into account, from the cost of the land to building the store, stocking it, and even bringing in new workers. Research was done on all of those things to come up with a realistic cost.


Perusing the Internet and networking with others in the industry let them come up with a base amount that this expansion would cost. With everything pulled together, the business would need $750,000 to create a new shop that had everything needed to be a great upgrade.

What Financing Options Are Available?


A traditional business loan was one option for the shop but they wanted to make sure they got the financing that worked specifically for their needs. That meant considering various options, such as small business loans, merchant cash advances, line or credits, and more. Taking down the pros and cons of each choice made it clear what direction the owners want to go.


In the end, the decision was made to apply for an SBA 7(a) loan. It fit the company’s needs and had a variety of benefits that seemed great to move forward with.


Reasons to Select an SBA 7(a) Loan


These loans tend to be inexpensive with longer term lengths and lower interest rates than similar business financing options. The presence of monthly payments also worked well with the way the business operates.


There are requirements for the loan but this company met them all and went forward with the application. They’d been in business long enough, had enough revenue, and carried a high enough credit score to be accepted and receive funding.


How Things Are Going Now


Since the loan came in, the company has worked hard to create a new space for customers. It took a lot of time and effort but it was well worth it when things opened and customers flocked to the new location.


After that point, both stores have been successful and things look great moving into the future. There are no plans for expansion soon, but the owners know they have options to take advantage of if things change at some point.

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