Inexperienced and unaware of the ‘hidden costs’ involved with business start-ups, young and growing restaurateurs suffer when they underestimate how much working capital is necessary to keep business afloat in the first year.
Considered the largest contributor to business failure in the first 12 months of operation, budgetary ‘blow-outs’ are exacerbated if young businesses valuable working capital has been tied up in depreciating assets like hospitality equipment.
“When you’re starting out in a business from scratch, you don’t have a real idea of how much it will all cost you,” says Ayoob Ismail, owner/manager of the thriving Nandos franchise in Brisbane City’s Festival Towers. “Unforeseen council requirements can end up costing you a lot more than you anticipate.”
Freeing up working capital in anticipation of these ‘hidden costs’, is one successful measure against business failure. The Silver Chef Rent-Try-Buy® Solution allows business owners like Ayoob to ensure adequate working capital is available when ‘hidden costs’ arise.
Financing his equipment whilst protecting his business against ‘hidden costs’ was easy for Ayoob. “Despite not having a lot of capital, I was still able to finance my equipment through Silver Chef. It meant my capital was not tied up in equipment and I was able to use it to satisfy unforeseen council requirements that came along later.”
The Silver Chef Rent-Try-Buy® Solution meant Ayoob did not experience the severe cash flow pressures that cause many start-ups to fail. Rent-Try-Buy® ensured he was financially prepared for any unforeseen business expenses, and avoided any major ‘budgetary blowouts.’
“Silver Chef was the easiest, their process was much simpler and their response time much quicker,” says Ayoob. “For equipment finance, Silver Chef is the best!”