Scaling up: next steps for small business?

[CG2000]

Hello,

I feel a bit overwhelmed at the moment. We have a small kitchen business where we retail and install kitchens. We have a showroom which we renovated through a loan of £15,000 from family and our own personal investment. We have come to the stage now where we need to re-invest into part of our showroom and we don't have the spare funds to do this so we need to look at some business investment but I am unsure where to start - there is so much online I could do with getting a bit of direction from somewhere but unsure where to go?

Any help would be greatly appreciated, thank you.

 

[Gordon - Commercial Finance]

How long has the company been trading?

 

[CG2000]

How long has the company been trading?

We are coming towards the end of our 3rd year

 

[Gordon - Commercial Finance]

I had asked a few questions in your last thread on the same subject that you never managed to answer.
Below is my advice from that thread - all that has changed within the advice I suppose is that now that I know you've been trading 3 years, you might be eligible for a general business loan as well.

"Investing in the showroom will depend on what the current status of the building is with respect to finance. Is there a mortgage on it for example?

The van is pretty straightforward - as long as your company isn't insolvent you can get asset finance on it

Computer equipment, as with the van, can be financed. Less lenders will have an appetite for it compared to wheeled assets but I know of a few.

Employing staff - you won't get anyone else to pay for that. You need to just budget for it and handle it yourself. However having good agreements in place which are affordable per month on the other stuff makes this much easier.

Marketing - as above. Might be worth getting an outsourced marketing company to give you some support? Much more flexible than hiring a marketing person.

Where are you based?"

 

[CG2000]

I had asked a few questions in your last thread on the same subject that you never managed to answer.
Below is my advice from that thread - all that has changed within the advice I suppose is that now that I know you've been trading 3 years, you might be eligible for a general business loan as well.

"Investing in the showroom will depend on what the current status of the building is with respect to finance. Is there a mortgage on it for example?

The van is pretty straightforward - as long as your company isn't insolvent you can get asset finance on it

Computer equipment, as with the van, can be financed. Less lenders will have an appetite for it compared to wheeled assets but I know of a few.

Employing staff - you won't get anyone else to pay for that. You need to just budget for it and handle it yourself. However having good agreements in place which are affordable per month on the other stuff makes this much easier.

Marketing - as above. Might be worth getting an outsourced marketing company to give you some support? Much more flexible than hiring a marketing person.

Where are you based?"

Thank you and apologies that I didn't reply to my last post - December was a busy time and in all honesty it slipped out of my mind until now. We are best on the outskirts of Coventry, near Leamington Spa, Kenilworth...

 

[Gordon - Commercial Finance]

Thank you and apologies that I didn't reply to my last post - December was a busy time and in all honesty it slipped out of my mind until now. We are best on the outskirts of Coventry, near Leamington Spa, Kenilworth...

How much money do you reckon you need?

Also, I had a question in there about any financing outstanding on your building.

 

[CG2000]

How much money do you reckon you need?

Also, I had a question in there about any financing outstanding on your building.

We don't have a mortgage on our property it is rented. In terms of costs to renovate, we are looking at around £15,000 although we haven't looked at figures properly yet until we know how to approach the financial side of it. We are still repaying back family too from our last investment

 

[dotcomdude]

We have come to the stage now where we need to re-invest into part of our showroom and we don't have the spare funds to do this

It doesn't sound like your business is thriving, so you may not be ready to scale yet. May be better to focus on things within your control and means - so you can repay your family first and then think about growing...

 

[CG2000]

It doesn't sound like your business is thriving, so you may not be ready to scale yet. May be better to focus on things within your control and means - so you can repay your family first and then think about growing...

Ok thank you for your help and advice

 

[Gordon - Commercial Finance]

You could probably just about get a business loan for £15,000. Although I'm saying that without having looked at your accounts or really knowing much about your position...

You mentioned in the other post about getting a van and some computing equipment - is that still on the cards or are you just looking at the property adjustments?

 

[CG2000]

You could probably just about get a business loan for £15,000. Although I'm saying that without having looked at your accounts or really knowing much about your position...

You mentioned in the other post about getting a van and some computing equipment - is that still on the cards or are you just looking at the property adjustments?

We have put the van on hold for now, but computer equipment would be ideal still

 

[Gordon - Commercial Finance]

We have put the van on hold for now, but computer equipment would be ideal still

Send me a PM and I can get some more details from you and maybe see if I can help.

 

[Mark T Jones]

Funding for premise fit outs is what we do. We can often re-finance the historic spend too.

That said, I do recall your previous post saying you were nervous about repaying loans etc? Of course you will need to assure lenders - but most of all yourself that borrowing is the right course of action for you!

 

[Gordon - Commercial Finance]

@Mark T Jones I was just dropping your name in a PM there!

Secured on the basis that Mark would arrange would be the best place to start. I think unsecured it might turn out quite expensive...

 

[GlennMiddleton]

Good luck with the business investment, but also plan in detail for any expansion. Do you have the necessary infrastructure to support increase sales? I speak from bitter experience of a company expanding with little thought, do you have someone to invoice all the jobs, someone to chase up deposits/outstanding debts. Please don't take this as criticism, just trying to highlight issues that may arise. Good luck with the project.

 

[cjd]

You'd be better not paying back the family loan than taking out another that will cost you more. Is that necessary? Certainly don't pay yourself back then get a loan, therin madness lies