A Sunday Board Meeting
This Sunday was different than most Sundays for me. You see I am involved in a small corporation where we are considering expanding our business. We had a board meeting today to discuss and finalize our plans regarding obtaining the necessary equipment for our new restaurant.
There are just five of us in our group and we come from different backgrounds. But we joined together three years ago and opened a bagel restaurant. Though it was rough at the start, we persevered and now own a thriving business.
We just needed to make the decision about how we were going to get the equipment for the new store. Originally we were considering opening the second store as a satellite store, but the location we found is too far from our original location.
For the first store we used equipment financing to purchase what we needed - and it really hindered our growth. With our line of credit tied up, we found our company to be short on cash - and it needed some cash injections from time to time. This time we didn’t want to have the same headaches - we were going to go a different route.
We decided that equipment leasing would be a better option. Not only would it reduce our startup cost, but it would give us better cash flow - which is critical with any start-up.
The biggest thing we were stuck on was whether or not we were going to make some of our specialty products at the new store, or if it would make more sense to deliver them from the other store. One of the members present suggested we could use a commercial leasing program and get a short term lease to see whether we should make the products at both stores.
The meeting adjourned with promises of securing the equipment this week through leases. It should be a lot less stressful when we open - just a few weeks from now.
