Business plan and forecast for financing retail premises

The Situation

The directors of a rapidly growing retail business needed to move to larger high street premises. They had identified larger premises, that required refurbishment and other capital expenditure, and hence, needed to raise finance as they did not wish to deplete the working capital of the business. A business plan and forecast had been prepared, but had failed to raise finance from traditional bank sources. The prospective landlord was unwilling to consider letting the target premises to the company until he was satisfied that adequate finance was in place.

The Task

I agreed with the directors that the existing business plan and forecast provided inadequate visibility of the growth potential of the business, and was unlikely to attract the required finance. It therefore needed to be reviewed and reworked to a professional standard, so that approaches could be made to alternative financiers. In addition, the directors needed assistance in surveying the new premises and negotiating with the landlord.

Action Taken – Commercial Business Plan & Financial Forecast

I prepared a focused, commercial business plan and financial forecast, working closely with the directors. In addition, I ‘stressed’ the forecast so that both the potential landlord and funders could  review the resilience of the business to potential ‘downturns’. Having agreed the content and format of the business plan, I approached a trusted finance broker who could work with this information to identify potential funders. At the same time, a trusted business property consultant from my team began negotiations with the landlord of the target premises.

The Result

The commercially focused business plan and forecast attracted offers from funders, indeed the directors were able to approach their bankers again and receive an offer of finance. My property consultant successfully concluded a competitive deal with the landlord, who was also reassured by the financial strength of the company and its future growth potential, as evidenced by the business plan and forecast. The company was able to take on the lease and move into the new premises in order to showcase its growing range of products, and employ more staff.