Did you set goals for 2019? Did you make promises to eat healthier, exercise regularly and be kinder to your mother-in-law? How are those resolutions holding up?
It is equally important for entrepreneurs to set achievable business goals—ones that will help your enterprises become more profitable.
At GRP Capital, we want all of our clients’ businesses to grow and prosper. We also know that growth doesn’t just happen. Growth occurs when owners and managers brainstorm the best ways to bring in more revenue, operate more efficiently and expand intelligently.
Some of our most successful clients have used the following methods to create growth, which has also improved their work life and contributed to greater personal wealth.
Property Improvement and Renovation:
Be honest about your property, whether it’s a hotel, assisted living facility, restaurant, office building, retail space, school or storage facility. How does it look to a new guest or visitor? More importantly, are there remodeling projects that would bring in revenue? Could you expand a lobby to include a fuller meal service? Would the cost of adding an elevator be offset by convention rentals?
Does your business have a season? For many businesses, summer drums up more business. Therefore, making decisions about renovation in the winter is an excellent idea as you can begin the construction right away and plan to be done by summer.
How is your current business financed, if at all? Often, you can benefit from the advice of our GRP advisors who will consult with you on the best types of financing for your goals. They can assist you in finding a loan that is a better fit or they can create a loan package that will allow for expenses and working capital so you can generate more growth.
This might be the time to contemplate switching types of loans. Consider changing from an SBA loan to a conventional loan or examine whether a non-recourse loan would be a good fit for your business plan. A bridge loan might be a great option when short-term financing is needed.
Brand New Project:
If you have proven yourself as an entrepreneur and manager, you can capitalize on your experience and equity to expand your reach into another similar project. You can also branch out into an “adjacent” business, one that utilizes your skills and knowledge, that allows you to experience new challenges and create new growth. We can help you evaluate market trends in various fields and help you assess the risks and rewards for traversing a new business path.
In the hospitality world, clients often find that certain franchise affiliations offer greater opportunities for increased profits either because of corporate support, brand reputation or proximity and competition issues. There are times when “reflagging” a property is an excellent idea, especially if the costs can be quickly made up with increased occupancy and daily revenues.
What were the ways that people found you and your business? What was the best use of your marketing dollars and what should you change in 2019? During winter is a great time to go over all of your financials from 2018. The numbers are a better indicator than just your gut feeling. When were you truly the most profitable? Why? Can you capitalize on these drivers?
The Alaskan Inn – Ogden, Utah
GRP recently arranged the financing for the purchase and renovation of the Alaskan Inn in Ogden, Utah.
Our client was an experienced builder, both of custom homes as well as office and retail space. He had a vision of what type of remodeling this boutique inn could benefit from. He was ready to try his hand at hotel ownership, utilizing the excellent management team that was already in place combined with his skills and knowledge regarding property improvement.
The Alaskan Inn is located near several ski resorts but was not currently marketing its proximity to the local ski scene. Also, this boutique bed and breakfast had previously been marketed as a couples’ retreat which limited family travelers, reunions and other groups from considering the locale during vacations and travel.
We were able to match our client with a Small Business loan product which provided him with competitive rates, funding for his property improvement and financing to purchase the property.
Our client took possession and immediately began renovations, reconfiguring the guest units so that whole families could occupy each guest dwelling. In addition, he made plans to put the property on the shuttle route for one of the local ski resorts so that clients could easily get to the gorgeous slopes nearby.
The Alaskan Inn already has devoted regular guests who love its breathtaking views and its unique setting. With skilled management and an eye for design, our client is sure his new property will continue to bring great joy to its guests. Our client was thrilled that, just before the renovation, Hallmark featured the property in their Christmas special, “Christmas Made to Order.”
Whether you are expanding your existing portfolio or investing in your first business, GRP Capital has the resources to help you meet your required capital needs. Our services include divisions of Real Estate Capital Markets, Small Business Financing, Construction Lending, GRP Capital Debt Fund, and Consulting and Advisory. Learn more at grpcapital.com.