Experts share advice on how hospitality businesses can expand during uncertain times
The Cumberland Building Society has teamed up with other experts to share advice for hospitality business owners on how they can safely expand their business, despite a challenging economic climate.
Teaming with Burnetts solicitors, real estate consultants Colliers, and accounting firm Armstrong Watson, The Cumberland highlighted how owners should invest were possible to futureproof their business moving forward.
Meanwhile, preparations should include fully costing financial needs for expansion against the usual business running costs, as well as carrying out tax and cash flow planning, and ensuring that employee growth coincides with that of a business to meet increased demand.
Matthew Hutton, accounting senior manager at Armstrong Watson accountancy firm, said: “Expanding your current business now will help capitalise on this returning trade and despite increased interest rates, there are still plenty of options for those looking to finance expansion.”
While challenges are abundant, opportunities remain for those working in the hospitality sector, where businesses have risen to economic challenges time and time again, the group said.
Robbie Mather, head of commercial property at Burnetts solicitors, said: “The hospitality sector is incredibly resilient. Look at what it has had to overcome in the past 20 years alone.
“The opportunities are still strong still strong on the back of the Lake District brand and the worldwide draw that the area has. Those that provide a truly unique experience, coupled with the beauty of the local landscape are those who will thrive.”
While there are opportunities for businesses to expand, it’s important to avoid the pitfalls which may emerge. Moving too fast, without a clear plan can cause issues further down the line and result in catastrophic effects.
Those who have set off on expansion plans and have not fully costed financial needs against the usual business needs run the risk that expansion plans could stagnate, the experts warned.
Mather added: “I would advise those to have early discussions with their accountant to discuss tax and cashflow planning. They should also speak to legal advisors on business impact, property planning matters and employment requirements, and with their financial lender to discuss access to funds, the amount needed, timings of cash requirements and so on.”
Meanwhile, not hiring enough members of staff to cope with the planned expansion can see it fail to come to fruition, warns Matthew Hutton.
He said: “If you do not hire enough additional staff to cope with the expansion of your business, it may lead to your existing staff being overworked which could lead to reduced morale. Businesses should try to ensure that they are adequately resourced for an expansion by hiring new staff where necessary.”
For hospitality business owners who are looking to expand, The Cumberland, Armstrong Watson, Burnetts and Colliers are on hand to support in managing the process and providing guidance.
Alasdair Swan, senior commercial manager at The Cumberland said: “Supporting people and businesses has been at the core of what we do. We want to make a positive difference to people’s lives now and in the future.”