
Supply Chain Issues Hit
COVID wasn’t the end of challenges for this manufacturer. Things got extremely complicated when supply chain issues started to become more common. While competitors had closed on a temporary or permanent basis due to COVID, this company ran into an issue with business falling almost 50% while losses continued to be an issue.
While the business looked into additional traditional funding, it was denied. This is what made the owners put on their thinking caps to consider another way to move forward and succeed. They decided that a new product line based around personal protective equipment could be the perfect solution.
The Cost to Expand and Change
Before delving into potential financing options, it was essential to understand exactly how much money would be needed for the expansion. In the meantime, the company was doing okay picking up all the clients of competitors who had closed their doors. However, they knew this was a big change and it would require a substantial investment to get it right.
When all was said and done, it was determined that the manufacturer would need about $500,000 to move forward with its new product line. This was a big chunk of change but they held out hope that a solution would present itself.
