How to Use Working Capital for Opening a Second Location
Opening a second location is an exciting time for a small business, but it can be a stressful endeavor. Many small businesses turn to small business loans or merchant funding when opening a new business location, since it can be used for a variety of costs. In this post, we’ll give you a few suggestions on how to utilize a business expansion loan, so that opening a new location can be an exciting time for your business!
1. Building costs – Whether you’re building from the ground up, or paying for maintenance to an existing space, construction costs can add up fast. Opening a second location almost always entails some sort of building costs, so you’ll want to have enough cash to pay for this while still having funds to comfortably run your business.
2. Moving costs – Don’t underestimate the cost of moving to a new space! Even though you’ll be keeping your already existing location(s), you’ll still need to fill your new establishment with equipment and other necessary items. Hiring a moving company can be expensive, so make sure you have enough capital for the big day.
3. Furnishing and interior design – Having attractive interior style is an important part of any business. The ambiance can attract new customers, and ensure that they are comfortable while at your establishment. Having enough funds for these costs is important when opening a second location.
4. Additional employees – Hiring and paying new employees to work in your new establishment is another financial responsibility you need to be prepared for. Ensure you have the man power to get this location off on the right foot.
5. Equipment – Regardless of if you are purchasing or leasing equipment, you’ll need funds to pay for these costs. Having functioning, up-to-date equipment is an important investment that you won’t want to cut corners on, especially when opening a new location.
Opening a second location for your small business means investing in its future. Although the amount of costs may seem overwhelming, there are so many benefits. Having multiple locations means you’ll be able to serve more customers, and in turn get more business. At Fora Financial, we love small businesses across numerous industries with small business loans that they can use to expand. A small business expansion to a new location will help your business flourish for many years to come, so consider looking into a business expansion loan!
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