EXPANDING YOUR BUSINESS EMPIRE. BY RICHARD T LISHMAN Leave a comment

Dental Technology Student (Part 7 of 10)

In the previous editorial, our character, Bridget Crown, bought her own laboratory. Now, with business booming and a desire to expand, Bridget thinks about growing her business empire.
However, with more laboratories come a number of decisions that will differ from those associated with operating a single site, especially on the financial side. What does Bridget need to keep in mind?

TRICKY BUSINESS

First of all, to expand her empire Bridget will need a vast sum of available capital. For a start, it’s vital Bridget has the funds available to acquire a new laboratory or laboratories in other locations. This process isn’t as simple as just purchasing available units, and will involve a deep dive into her existing business model. She will also need to take into account the patient/practice demand of local communities, the current commercial property market in said areas of interest, the wider logistics of expansion (e.g. which locations make most sense for deliveries, catchment areas near practices etc.) and investing in technology, all of which will have a considerable financial impact.
What makes one business location successful doesn’t necessarily work for an additional space. Location could make all the difference for a dental lab, and scoping out potential dentists to work with before investing in a property could be crucial to its ongoing success. That’s not even to mention the process of hiring new staff, finding someone to manage the laboratory and all the budgeting this will entail – all of which should be part of her wider business plan.
Ultimately, buying and operating an additional business property is not going to follow the same path as her first purchase, and this can result in some unexpected financial pitfalls, as well as some worthwhile benefits.

BUSINESS LOANS

Unlike with her first laboratory, Bridget won’t be able to take advantage of any start up business loans when seeking property as her laboratory is already an established company. While other business loans will still be available, these are typically less generous than start-up initiatives and will mean that Bridget has to budget accordingly.
That being said, Bridget now has experience with business loans and her extra knowledge will likely come in handy. This could be a good opportunity to learn from past experiences and secure a loan that will offer more flexibility, for example. It all depends what Bridget is looking for and how much money she will need to borrow in order to make her dreams of expansion a success.

INSURANCE MADE…EASIER?

As anyone will tell you, navigating the world of insurance is no easy feat. With so many policies necessary to keep things running smoothly, you’d imagine that investing in a new property would double the stress. However, once insurance for your business is established, in some cases these policies can be slightly adapted to encapsulate both of your business properties without a lot of additional hassle.
For instance, Bridget could explore the option of taking out a Multiple Property insurance policy, that would cover both her existing and new business locations as well as potentially being much cheaper than insuring these properties separately.
As with any insurance, Bridget will need to look closely at the terms and conditions, working through the small print to see what is covered and if there are any caveats. For the most part, Multiple Property loans do provide good cover, but there will be things that aren’t included and Bridget will likely need insurance loans for each individual property that can’t be grouped together as well.
Seeking advice for the bigger picture
As with any huge financial decision, Bridget can ensure a smoother process by seeking advice from independent financial advisers such as the expert team at The IFA’s. This way, she will have support and guidance throughout every step of her exciting new venture, giving her the information she needs to make informed decisions that will maximise her chances of success.
As ever in a scenario this complex and with so many variables, this article has only touched on a couple of points that people in Bridget’s position will need to bear in mind should they consider expanding their businesses. Every situation is different, so seeking advice is always the way forward!

For more information, please call 0845 345 5060 or 0754 336 8478 or visit www.theifas.com