Second Locations: Big Benefits and Big Costs

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Paramount Merchant Funding has recently seen an influx in requests for business owners looking to expand, and has extended its already impressive small business program to keep up by hiring two new employees full time.

Merchant Cash Advances

Paramount Merchant Funding, LLC

As the economy begins to pick up, more business owners are looking to expand their operations. Because banks and other investors are still reticent to begin lending to fledgling but successful businesses, other alternative funders are stepping up their programs to help small business owners find the funds they need. Paramount Merchant Funding has recently seen an influx in requests for business owners looking to expand, and has extended its already impressive small business program to keep up by hiring two new employees full time.

The three most important considerations for a business are location, location, location. It is the difference between a thriving business and a bankrupt one. Successful entrepreneurs understand this and spend a long time picking out their first business location. With so many aspects to consider, it can be a daunting task but the pay off is incredible. After the first location is a success, firmly on its feet, the owner has the option to do it all again and open a second location.

Many might think that this is an unnecessary risk with an already good thing, but there are in fact many good aspects to considering expanding a business. Expanding to new locations is a crucial step towards even greater success for many small business owners. Many business plans can be applied to other neighborhoods, new towns and across even greater distances. Every major chain started with one location. Expansion is an important part of any successful business’s life span.

The first location requires considerations such as accessibility, built in customer base, the quality of the neighborhood and the neighborhood’s future, existing competition and general market place health. The second requires the same check list but with a little more direction. Now that the business owner knows who their customer is and how to market to them, he or she can scout locations with similar customer bases. However, the most important thing about the second location is its distance from the first. If it is too close it could cut into sales from the first and the business may start competing against itself. This is of course subjective to the business at hand. For some a few blocks may be far enough away; for others it may mean the next town or a different city.

After all the blood sweat and tears many business owners are reluctant to start from scratch again. But what they may not realize is that they don’t have to go at it alone, and even more so, they don’t have to risk as much as they thought. Banks require collateral in the form of some sort of personal asset to be sold in the case where a business fails to pay them back, possibly even the first location. However, there are plenty of alternative unsecured business loans which don’t require the owner to put it all on the line for the sake of a new location.

Paramount Merchant funding specializes in unsecured small business loans for owners looking to expand. “We recognize what banks might not: these are successful businesses, bad credit history or not, they can pay back their loans with one location while opening the second, and eventually become even more successful,” CEO Dan Smith says. He also noted that they see many returning owners who come back for help on their third or fourth location. “It’s great to be able to see your handy work translate into real numbers for these owners. They come to us as one little store and in a few years they’ve expanded to several. To further assist business owners, we have added two new employees who specialize in helping owners expand their locations and will cater to the needs of business owners looking to expand their presence”. He added that the company is also looking into funding bad credit small business loans in the near future.

CONTACT:
Address:
242 W. 36th Street, 14th Floor
New York, NY - 10018
Toll Free: 877-885-1505
Fax: 888-722-3313

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