Now that at least some of the economic uncertainties from the beginning of the year are clearing up a little, it might be a good time to consider which investments in your business make sense now.
For some of you, it’s wise to analyze your facility and your location. Are they what you really need to take your business to the next level? Even if your facility and location have worked well up to this point, it might be evident to you that they are now holding your company back.
Do you need more space?
You can deliver equipment throughout your community now. But, it might make considerable growth and profitability sense to relocate to where more of the action is. A very strong market opportunity might even make adding a satellite location an attractive option. Relocating (or adding a satellite store) is not done without considerable expense, but for some it still can be an excellent short-term and long-term investment.
I have talked to many rental business owners who are physically out of space and landlocked. Some know the situation is acute. They cannot acquire the additional inventory they need to grow their business because of the lack of room to house it. For many, remote storage is not a favorable option because of the added occupancy, labor and transportation costs. But for a chosen few, it works well.
Is it worth the investment?
The depressed commercial real estate market in some of your communities might be right for changing locations or adding a satellite location. But it’s important to be certain the financial resources you’re considering investing in real estate do not hinder your ability to take care of the here and now. Plus, you’ll need some reserves for a cushion just in case the economic recovery doesn’t go as well as predicted. It can be tempting to over borrow when interest rates are so low.
For some rental business owners it’s not that they’re out of space, but rather the quality of the facility is not what it needs to be. Some might need a much more professional showroom and exterior. Others might require a much better shop or warehouse facility that would be impossible without relocating. Many know their businesses would benefit greatly by having a facility and yard that are more conducive to running an efficient operation.
But even though you might prefer to purchase a new location if one is needed, it might make more sense to lease it. Some attractive properties have been vacant for an extended period of time and might have a lease arrangement that would be hard to dismiss as an option.
Have you movedpast survival to growth?
Some of you might still be psychologically (or financially) in survival mode. But some rental business owners have concluded the great recession is in the rear view mirror and would like to invest in ways to regain the positive momentum in their companies that has been missing in the recent past.
Of course, there miight be better uses for your resources, so consider all of the other options to weigh which one (or ones) might be the best for growing your company. My instinct is that this is a pivotal year for those of you who choose wisely and are proactive.