Your business has helped you grow financially. But do you know there may be opportunities to get even more out of your grocery business? Here are 3 essential things you should look into:
- Upgrading your equipment to newer and more efficient models
Older equipment can require a lot of maintenance whether you’re operating a commercial laundry or dry cleaner, gas station, car wash or grocery store. Newer and more energy efficient equipment can save you significant amounts on your utility bills.
Your business can also generate tax benefits from purchasing new equipment as well. (See the blog post on IRS Section 179 Tax Deductions).
Even more, new equipment may offer a new opportunity to get customers in your store. A laundry owner, for example, can always advertise that the store now sports bigger, faster machines that allow customers to wash more in less time.
- Refinancing your high interest business loans
You may have taken out high interest loans from alternative sources to fund your grocery business. Even though your business is generating much revenue, high interest payments take money out of the business and out of your pockets and hold back your growth.
Your time running a profitable business helps make you more attractive to main stream lenders than when you just started. Taking advantage of near historically low interest rates to refinance existing business debt is a smart move.
- Purchasing the building where your store is located
Many businesses are the anchor tenants in the buildings in which they are located. With rents getting higher, purchasing the building may be a wise business move. Owning the building removes the uncertainty that comes with leases that may not be renewed by the commercial landlord.
You’ll enjoy a greater sense of business security knowing you will be able to hold on to a profitable location for a long time. Also, depending on the size of the building and other factors, mortgage payments for the building may not be much higher than the rent. Ownership gives you the chance to make significant improvements that the previous building owner may have been reluctant or unwilling to undertake.
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