From Business Plan to Successful Location #1

Background

Two ladies came to our NeedSpace Commercial office wanting to open a skin treatment business. They had worked at a spa together and, based on their experience and customer base, were ready to venture out on their own. But, were they really ready? Ready needs to be defined. A good idea is only as good as its plan of preparation and execution.

Challenge

Ready, to me, is having a solid business plan, having a source of capital for equipment, improvements to leased space, and operating funds until business takes off. These two ladies had none of these items. What they did have is drive, a wealth of experience and certifications, and a solid customer base. Now it was time for a reality check on the deficiency between wanting and being ready.

Solution

NeedSpace suggested that these ladies formulate a business plan first and then come back to us, which they did about three months after we first met. After some tweaking, they had a solid business plan to move forward from. Next was finding a suitable location while also locating a source of funding for a start-up business. We were able to accomplish both. The financing part was through a federal VOLT loan program given to the State of Maryland. The State gave it to the counties to fund new businesses within their respective counties. Finding them this program was the only way to get a loan as they were not “bankable” at the time. In their first year, during the pandemic, they exceeded their projections by 5% which was a 90% higher revenue than they generated at the spa they previously worked at.