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Financial Checklist for Business Growth

Financial Checklist for Business Growth

Business growth can be a frightening proposition. Change, risk and unknowns are all part of the equation, and there’s no guarantee that everything will work out the way you hope. However, it’s necessary if you want to continue to be successful, and Hardware Retailing is here to help you through the process. Take a look at this checklist for ideas and necessary documents when looking into business expansion or growth.

When thinking about expansion:

___      Is the location you’re looking at already or previously a business site? Look into the store’s financials and keep an eye on whether profits can be predicted.

___      Talk to a store’s long-time employees about the business before you decide to buy.

___      Is there already a loyal customer following at the location? Look into the location’s reputation with its customer base to see what kind of reaction a new ownership group would receive.

When asking for a loan:

___      Business statements, such as a profile, loan repayment plan, collateral, management experience and resume, loan request or even your succession/exit plan

___      Legal documents such as licenses, articles of incorporation, copies of contracts, franchise agreements and any leases you have

___      Credit history, personal and business related

___      Other documents like letters of reference or anecdotal evidence from retail peers

___      Income tax returns for the past three years

___      Business projections, usually for one to three years in advance

___      Accountant-compiled reports or statements, such as a balance sheet, income statement, cash flow, account receivables and accounts payable

For more information about documents like balance sheets and income statements, try our training programs through the NRHA. Click here for details.

About Chad Husted

Chad Husted

Chad is an assistant editor for Hardware Retailing magazine. A Purdue University graduate, Chad has covered sports and news at the high school, college and Olympic levels as a sports writer, editor and designer for multiple newspapers. Prior to joining the NRHA, he was the sports editor for the Herald Journal in Monticello, Indiana, and a designer and copy editor for the AIM Media Indiana group in Columbus, Indiana. When not cultivating his beard, he enjoys backpacking, cooking, traveling and watching too much sports and Netflix.