Navigating financial challenges is a crucial aspect of business growth. For many businesses, especially those recovering from the pandemic, securing financing can be a daunting task. This post explores how one business tackled these challenges head-on with the support of the Hawaiʻi Small Business Development Center (HISBDC) and outlines their future plans for sustained growth.
In 2023, a local business faced significant financial hurdles. Despite a steady improvement from the pandemic’s depths, their financials were not strong enough to support a construction loan for a new store. Key concerns included an existing loan from the owner, weak net income, and negative equity. However, with strategic planning and guidance from the HISBDC, the business began to explore alternative financing options. We identified potential lenders willing to finance the new location buildout, leveraging the increase in Japanese visitor spending.
The journey with the HISBDC began when the business owner sought assistance for expansion amidst the pandemic. Despite initial setbacks, including weak net income and negative equity, the HISBDC provided invaluable guidance on financial viability, marketing strategies, and potential funding sources. This support led to a significant turnaround, with 2023 revenue reaching 80% of 2019 levels, despite visitor numbers being only 60% of pre-pandemic figures. The HISBDC’s advice on securing an SBA loan and exploring new financing options enabled the business to finance the buildout of a new location and plan for future expansions.
Looking ahead, the business is focused on expanding its Waikiki location with the support of the HISBDC. We are assisting the owner in exploring additional funding opportunities to support this expansion. Building business credit and enhancing the business’s financial position are key priorities to ensure sustainable growth. Additionally, the business is leveraging its larger kitchen at the new location to increase catering capacity and revenue. Marketing strategies targeting visitors from Japan and creating exclusive items for the grand opening are also part of the plan.
This journey highlights the importance of resilience and strategic financial planning in overcoming business challenges. By exploring various financing options and leveraging market trends, businesses can navigate financial hurdles and achieve growth. The HISBDC’s support underscores the importance of strategic guidance and access to financial resources in helping businesses overcome challenges and achieve success. Strategic planning and leveraging available resources are crucial for future growth. By focusing on expansion, building business credit, and enhancing financial stability, businesses can position themselves for long-term success.