A new project is a very exciting gift – the thrill of a second location, community and employee’s impact, and planning what will the new location look like. It’s easy to be blinded by the initial idea of a new building – but here’s where we should proceed with caution and ask this critical question – is this the RIGHT project to meet our and the community’s needs?
At Trinity Financial Consulting we see clients who are locked into the idea to build a new structure or acquire a business and haven’t considered all options. The excitement of a new project has a way for people to get the sequence of events in the wrong order. We have seen clients that have already spent money on land & drawings or agreed to acquisition price & structure THEN try to secure financing to complete the project or acquisition. Contact Trinity to help you prevent a disaster!
One of the strengths of the Trinity Team is our ability to see multiple options for any project, understand the debt service requirements, analyze the additional cash flow and make sure the final project or acquisition fills the need at a reasonable cost.
Take these two examples in the photo for this article.
Which one is the new construction and which one is a renovation of an existing structure? Can you tell?
The idea here is to fill the need; whether it’s more space, more capital, additional location, increasing cash flow, David Pack and the Trinity Team will carefully help you consider all the options and cash flow requirements available and review the pros and cons of each. Our clients make the final decision but with better clarity, understanding and good forecasts for performance.
Here are two examples of multiple options for two very different needs:
An organization needs more space for operations:
- What areas of town are you considering and why
- Renovate and expand an existing facility
- Renting a second location for a period of time
- Purchase, renovate and expand another facility
- Purchase land, design and build a new building
An organization needs to improve cash flow without adding a second location:
- Increase pricing
- Attract more diverse members or consumers
- Refinance existing debt and lower payments
- Examine the budget to see where expenses can be trimmed
- Change processes to eliminate waste and improve efficiencies
There’s more than a single way to resolve any challenge or meet a need. Before beginning a large project, make sure that all options have been discovered and analyzed – and pick the best one that fits your needs and budget.