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.