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    4 Replies Latest reply on Oct 27, 2008 2:22 AM by intechspecial

    Expanding my business

    cbalfour Newbie

      I am trying to decide if it is a good idea to expand my business. I own an operate a clothing store and before this financial crisis, i had seen the need to expand either in store space or possibly acquire an additional location in order to keep up with demand. Now i am not so sure because we may need to do this expansion out of pocket because banks are not lending to small business now, and most of the financial advisors on TV are saying that this crises may last for at least a year.
        • Re: Expanding my business
          LUCKIEST Guide
          Expanding my business, Welcome

          Tell us more. Who are you?? Where are you?? What kind of business??

          How long have you been in business?? Do you have an Accountant??

          Good luck, LUCKIEST
          • Re: Expanding my business
            dstahl Wayfarer
            We are still lending money. Give us a call and we can help you decide if making the move will be financially sound.

            Give us a Call

            Dan or Chris
            • Re: Expanding my business
              A_Ellicott Adventurer
              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!
              • Re: Expanding my business
                intechspecial Ranger
                You might want to consult with a free SCORE advisor or Small Business Administration advisor before you go forth with your plan.

                Neither SCORE or the SBA charge a penny to assist you, and they are located in every major city in the USA.