3.
Re: Expanding my business Oct 26, 2008 10:20 PM
Expanding during a down economy
can be a good way to lay the foundation for future growth. It can also be a way to quickly go broke. Such a strategy definitely has its risks.
One key factor is your market. What kind of clothing do you sell? Obviously people are not going to go shopping for luxury items while their net worth is plunging due to the stock market. On the other hand, kids still outgrow their school clothes no matter what the market does.
Second is your local market. My area of Texas has definitely fared better than the country as whole. How's your area doing?
As far as expansion, don't be afraid to bargain hard. Looking for a new location? Perhaps the landlord will discount the rent for the first six months. What about your suppliers? Could you negotiate better prices or terms while you are in expansion mode? I'm not suggesting that you take unfair advantage of people. Rather, present the proposed expansion to them as a way you all could benefit down the road and ask them to help. You're looking to
increase your orders while most of their other customers are probably cutting theirs. That makes you a more valuable customer. If you don't ask, you won't get. It doesn't cost anything to ask.
As far financing. Have you considered a line of credit? If you have a line of credit established you could finance the expansion out of pocket while having the line of credit available if you need it.
Good luck in whatever you decide!
