Are you thinking about starting a renovation project at your retail shop?
It can be difficult to know where to begin, and it can be scary to think about closing your shop while the renovations are underway.
In today’s post we share tips for getting your renovation project going, and how to alleviate concerns about cash flow.
The first step towards renovating your retail shop is deciding what type of changes you want to make.
Begin by creating a list of everything you would change if you had an unlimited budget. While you may not be able to do everything on your list (all at one time), it’s easier to set priorities when you have all of your options in front of you.
Once you have your full list of changes completed, get estimates for each of the changes that you really need or really want to have done right away.
For example, if you have been putting off a big air conditioning or ceiling repair, get quotes for that right now. Those are big items that you will definitely want to take care of during this remodeling phase.
Next get quotes from vendors for the “nice to have” items on your list such as updating your changing rooms, buying new registers, improving your lighting and so on.
You likely won’t have the budget for all of the items in your “nice to have” list. However, getting accurate quotes for each potential change will help you prioritize which tasks should get done now because you’ll be able to weigh the cost against the potential reward.
Once you have finished getting your quotes you can plan a reasonable budget for the renovation project.
If the cost is much higher than what you originally thought it would be, or you’re starting to worry about how the renovations will impact cash flow, consider taking out a Working Capital loan. This type of business loan can help you secure the funds you need specifically for a renovation or expansion project. Approval can be granted in just 7 to 10 business days and collateral is not required.
Once your budget is set and you know which changes you’ll be making, it’s time to call those vendors back to begin negotiating!
Since you’ll likely need to close down your store (or at least sections of it) during the remodeling phase, you’ll want to put together a timeline and establish a deadline.
This may be easier to do if your business is seasonal and there are periods during the year that your store is closed (or very slow). If your business is usually steady all year long, you may want to consider opening a pop-up store or similar while your permanent location is being worked on.
Remember if you’re concerned about how you’re cash flow will be impacted during this renovation period, or you’re not sure how to pay for the renovations, you have the option to take out a Working Capital loan.
If you are ready to learn more about the Working Capital loans offered by ARF Financial contact us for more info.