A lot of small business owners looking to enter the lower middle market are prepared and well researched. That being said, plenty of things get through the cracks. For example, many start to look for locations and assume labor will be no issue, thanks to family and friends. A few minimum wage workers and assistance from the owners and family involved may sound reliable, but things might get tricky down the road. There are a few others small business owners need to keep in mind.
No matter what the condition of a building is, if it wasn’t built newly for this business, it probably has some shortcomings. Realtors help you out as much as they can, but some issues with a space can be hidden to all involved, even the previous owner who may have been there for some time. Too often, a new business owner will get things going only to find that a major issue exists in the space. That’s not a huge problem, it can be fixed in most cases, but not a lot of owners allocate money for location repairs from the get-go. And why would they? It’s a newly purchased and inspected building thanks to the sale.
Consider the things that most new business owners expect to spend. Marketing, staff, and other costs seem to go hand in hand with a new business. Repairs to the workspace aren’t always assumed to be an issue. It’s the most overlooked cost of starting a business. So, what can you do to prepare? In short, the capital to make sure those unexpected repairs and costs are the only protection from the unforeseeable. As any small business owner knows, allocating money in the beginning of a business is tricky and stressful. Other things like upgrades to existing systems and tools may seem more pressing. It comes down to the old saying: if it’s not broke, don’t fix it. Nothing is truer in the start of a small business.
Lower middle market businesses of any age struggle from time to time to find cash. Whether it is to build up a savings for repairs or just to get a business off the ground, SA Capital Partners is available to help get things going. Connecting you to investors and resources that makes the small business experience more streamlined, the team at SA Capital Partners knows the lower middle market, and exactly what you need to protect yourself from hurdles and bumps in the road to your business.
About SA Capital Partners:
SA Capital Partners is an innovative financial services firm that specializes in mergers & acquisitions advisory and capital raising for lower middle market businesses. We aspire to give all the tools necessary to complete any transaction. SA Capital Partner’s financial services industry specialists provide comprehensive, integrated solutions to banking transactions. Our breadth of services and industry knowledge allow us to understand each client’s unique business needs. Our goal is to make all financial services available to every small business.