Gauging The Growing Pains: The Hidden Costs Of Brewery Expansion

Gauging The Growing Pains: The Hidden Costs Of Brewery Expansion

March 29, 2018
12:00 pm
Brewery, Brewery Equipment, Equipment, Working Capital

As a brewer with a passion for your product, the last thing you want to do is stand still. If you make beers that people love, you everyone to have a chance to enjoy them. There’s no doubt, then, that you’ll expand your sales at the first opportunity. But before you do, you should be aware of the costly challenges that brewers face as they grow larger, including:

Big League Branding

As a local brewer, you had automatic authenticity with your customer base. You understood their culture, cuisine, and drinking habits, and could thus cater directly to them. But as you expand into other markets, you’ll have to start selling to people you don’t know as well. It will thus be an uphill battle getting them to try your beers instead of sticking to their current favorites.

To build authenticity in a community you’re not part of, you will need to conduct comprehensive market research and build a tailored publicity campaign. This strategy is expensive and takes time, so make sure you have access to flexible, affordable working capital to pay for a campaign every time you expand into a new market.

A Cornucopia of Codes

Brewers are subject to a host of health and environmental regulations, and those regulations vary across local, state, and (especially) national lines. Thus the more you expand, the greater your likelihood of running into regulatory issues. Your best bet is to research all the laws and statutes every time you move into a new jurisdiction, and do everything you can to comply with them ahead of time. But this can be expensive, especially if you have to invest in new equipment. Thus make sure you have either the savings or the working capital to make costly investments upfront.

Climbing Capacity

Expanding your operations frequently requires adding production capacity, which means investing in expensive capital equipment. The problem with such investments is that you have to make them months before you achieve any sales in the new market. Consequently, you’ll need to raise a large supply of cash as soon as you make the decision to expand. Unless you have ample cash on hand, working capital is likely the best way to raise this money. Even if you do have cash on hand, you might still want to use working capital, as it will prevent you from tying up all your money in expensive equipment investments.

To learn more about working capital for brewers and countless other businesses, contact Dimension Funding today.

Electric Vehicle Enhancements: The Benefits Of Purchasing EVs For Construction

Benefits of Purchasing Electric Vehicles for Construction

Electric Vehicle Enhancements: The Benefits Of Purchasing EVs For Construction

When you think of futuristic technology, what do you picture? If you see an electric car, you’re not alone! Electric vehicles offer an unprecedented opportunity to abandon fossil fuels without sacrificing speed or convenience. While most people picture such vehicles in the hands of ordinary drivers, they also have significant commercial applications, especially in the construction industry.

As a construction company looking to invest in new technology, electric trucks, cranes, and other vehicles should be at the top of your list.

The Many Benefits of Electric Vehicles

Electric construction vehicles and equipment are among the best investments you can make as a construction company. They aid your company on multiple fronts, including through:

Sustainable Branding– With electric vehicles, every time local utilities add renewable sources or improve efficiency, your carbon footprint will fall. Your company will thus continuously grow more sustainable over time. Not only is this a good in itself, but clients who care about the environment will be more likely to choose you, leading to higher revenues.
Convenient Charging– Electric vehicles prevent you from having to deliver fuel to your worksites, instead charging your equipment with power from the grid. And while it currently takes a long time to do this, recent advances in battery technology may soon allow you to charge in as little as five minutes. You can thus keep all of your vehicles powered up at a fraction of the effort that it currently takes.
Silent Solutions– Vehicles and construction equipment that rely on electric technology make little noise. Considering that concerns over noise pollution are among the most common barriers to new construction projects, adopting electric vehicles gives you more flexibility in terms of where and when you build.

While these and other benefits make electric vehicles a great investment, not all companies have the resources to invest in this way. Electric vehicles are still highly expensive, putting them out of the price range of many new and small construction firms. And while they are falling in cost, waiting for them to become affordable for your firm could force you to defer considerable profits.

If you don’t have the money for such investments but want to reap the profits now, consider purchasing electric construction equipment with working capital. Working capital loans provide generous, flexible funding for construction projects, allowing you to invest in equipment that lowers costs, raises revenues, and saves the environment. For more information on buying electric construction vehicles and other new technologies with this capital, contact Dimension Funding today.

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Constraint-Free Construction: The Importance Of Financial Flexibility In The Building Industry

March 23, 2018
12:00 pm
Construction, Construction Equipment, Equipment, Leasing, Working Capital

Success in business is only possible if you plan ahead, and this is particularly true in the construction industry. Building companies have to deal with a wide variety of contingencies that can suddenly raise their costs or cut their revenues. This creates serious shortfalls, making it essential that you have flexible financing to cover them.

Working capital offers the financial flexibility you need to deal with these problems. By providing cash, they allow companies with few liquid assets to cover cost increases and revenue shortfalls. Thus by maintaining access to working capital, you can survive:

Rising Resource Costs

From wood to drywall to wiring to scaffolding, construction companies need countless resources. Relatively minor changes in commodity prices can send the cost of these resources through the roof. For example, a sudden increase in demand for metal can drive up the price of wiring, scaffolding, and pipes, among other resources. These developments may well raise operating costs above what you’ve budgeted for. Working capital loans let you cover the difference until either the costs fall back down or your revenues rise to match.

Sudden Revenue Shortfalls

No matter how reliable and honest your clients are, there’s always a chance that they’ll fail to pay for your services on time. Even clients who work with you in good faith may still have to deal with financial problems on their end, forcing them to stall payments. If they simply don’t have the money, there’s not much you can do other than wait for them to get it, but you still need to fund your company until they do. Working capital lets you pay for everything while you’re waiting, so that your company doesn’t miss out on future opportunities because of problems with past work.

Inclement Weather

While you likely plan your operations around weather forecasts, storms sometimes travel farther or prove more intense than predicted. This can delay your operations, and thus your payments, for days or even weeks at a time. In the meantime, you’ll have lots of fixed costs that you still need to cover. With access to copious working capital, you won’t have any trouble doing this.

Injuries & Safety Issues

When a worker gets injured, your costs can increase markedly. Not only must you pay for their workers’ compensation, but if the cause of the accident isn’t immediately apparent, you’ll have to stop construction, identify it, and shore it up. With working capital, you can cover all these costs, restore your business to full safety, and get back to work.

For more information on costly contingencies in the construction industry or to obtain the working capital to deal with them, contact Dimension Funding today.

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Wagering On Washing: Why Improved Sanitation in Breweries Is A Worthy Investment

March 21, 2018
12:00 pm
Blog, Brewery, Equipment, Working Capital

As a brewery, you don’t just have a responsibility to satisfy your customers. You also have to keep them healthy and safe! You understand the importance of sanitation, and the benefits of improving it at every opportunity. By investing in new keg washers and other brewery cleaning equipment, you can obtain the highest standards of sanitation in your industry. This leads to large and lasting benefits, making it one of the best ways to invest in your brewery.

The Benefits of Improved Sanitation in Breweries

While most breweries understand that sanitation is important, there are some who are not aware of the full impact it can have. By purchasing the best possible cleaning equipment and taking full advantage of it, you can:

Reduce Interruptions– If one of your customers gets sick from consuming your product, you may need to shut your operations down and fix the problem. Your costs will thus increase even as your revenues grind to a halt. Investing in better sanitation equipment reduces both the frequency and the severity of these interruptions, bolstering your company’s finances.
Build a Better Brand– By buying the most advanced sanitation equipment on the market, you go beyond other breweries and establish yourself as a leader in cleanliness. This causes customers to trust you above your competitors, leading to greater loyalty and more consistent sales.
Prepare for Future Standards– What is considered advanced sanitation tech today will become the industry standard down the road. By adopting this technology now, you have more time to adapt to it, allowing you to incorporate it more effectively and with fewer disruptions.

Through these and other benefits, investing in the most effective cleaning equipment pays for itself many times over.

How Working Capital Helps You Invest in Cleanliness

Even after learning all the benefits of advanced sanitation, many companies are hesitant or unable to invest in it due to simple cost constraints. Cleaning equipment is expensive, and all but the largest brewers lack the cash to buy it outright. Thus when new devices become available, many brewers must slowly save up money before they can buy them.

Working capital loans let you skip the saving and start cleaning. They provide generous funding for new equipment, so you can make improvements now and then pay for them as your costs fall and revenues rise. As a result, you’ll never have trouble staying ahead of the curve on sanitation.

For more information on working capital, financing equipment, sanitation, and other keys to success in the brewing industry, contact Dimension Funding today.

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Shocks To The System: Sources Of Disruption In The Brewing Industry

Shocks To The System: Sources Of Disruption In The Brewing Industry

To paraphrase Murphy’s Law, if there’s a chance that something can go wrong, sooner or later it will. No one needs to understand this maxim better than brewers. The brewing industry has to deal with a wide variety of disruptions that can raise costs, lower revenues, or otherwise threaten production. In order to weather these issues, you must maintain access to a steady source of working capital. This is particularly important if you are dealing with:

Sanitation Scares

No matter how diligent you are about keeping your brewery clean, there’s always a risk that there will be some sort of health or sanitation problem with your product. Often, such problems are the result of issues with your ingredients and other supplies, which you may have had no way of knowing about ahead of time. Regardless of the source, you’ll likely have to stop production for days or even weeks so that you can clean your equipment and replace any contaminated supplies.

Working capital is essential when you’re facing sanitation issues. Not only will revenues fall because you can’t sell your product, but depending on how extensive the cleaning is or how much inventory you have to replace, your costs may increase dramatically. With working capital, you can stay above water financially until your production lines are back up and running.

Climbing Costs

Besides health and sanitation issues, you may have to deal with sudden increases in the cost of key supplies. Perhaps there is a crop failure that reduces the availability of an ingredient that you rely on, driving up the price of remaining stocks. It’s also possible that the cost of maintaining and replacing brewery equipment will rise.

While you can adjust to costs increases by cutting costs elsewhere or raising your prices, it may take time before you are able to fully make up the difference. Working capital lets you keep your business running in the meantime, giving you the breathing room to get your finances in order.

Inadequate Brewery Equipment

Success in brewing means responding to new market opportunities, but sometimes your equipment can hold you back. Say you identify an untapped market for a certain type of beer, but you don’t have the equipment to make it. Unless you can get that equipment, you’ll lose that market to someone else. Working capital allows you to buy new equipment and pursue such opportunities whenever they arise.

Dimension Funding offers working capital and equipment leases for breweries and countless other types of businesses. Contact us today to learn more about how our capital can benefit your company.

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Careful Construction: The Importance Of Working Capital To Worksite Safety

Importance of Working Capital to Construction site Safety

Careful Construction: The Importance Of Working Capital To Worksite Safety

March 16, 2018
12:00 pm
Blog, Construction, Equipment, Working Capital

Of all the duties that construction companies must fulfill, none is more important than keeping their worksites safe. Not only do such companies have a responsibility to their workers, who face some of the highest workplace injury rates in the modern market, but they must also safeguard anyone else in the area. To keep everyone safe while still running a productive business, you have to make a variety of investments on a regular basis. Working capital is essential for financing all these investments, including:

Quality Construction Uniforms

One of the simplest and most effective strategies for improving employees’ safety is investing in quality uniforms and other workplace gear. Construction uniforms use bright colors and reflective tape to alert workers to each other’s location. They also contain spaces to hold essential tools or attach harnesses. Certain uniforms may improve safety in particular climates. For example, if you do construction work in the American South during the summer, you’ll need gear that protects employees from heat and sun exposure.

Quality uniforms don’t come cheap, and if you need to rapidly expand your labor force or replace a large number of worn gear all at once, it may be hard to cover the cost from your ordinary revenues. Working capital allows you to pay for new uniforms whenever you need them, ensuring your employees have the gear necessary to stay safe at all times.

Effective Construction Equipment

From scaffolding to harnesses to precise measurement tools, quality construction equipment is critical to the well being of your employees. For maximal safety, it is essential not just to buy and use this equipment, but to replace it with more advanced equipment at every opportunity. These investments are almost always highly expensive, and only pay for themselves over long periods of time. Working capital will let you cover such costs now, achieving immediate improvements in employee safety.

Training Updates

No matter what uniforms and equipment they have to work with, employees can only stay safe if they have the necessary skills. You thus have to offer them periodic training courses that cover basic construction site safety while updating workers on any new gear or equipment they have to work with. Working capital may be necessary in order to obtain the best possible training instructors, software, and other resources. You may also need it to pay for lost productivity, since your employees will have to take time off work while training is going on.

Whether you’re looking to buy new equipment, update your uniforms, or pay for training courses, Dimension Funding has the working capital you need. For more information on providing a safe, efficient workplace, visit our website today.

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Automation Assessment: The Profits & Pitfalls Of Putting Your Brewery Operations On Autopilot

It’s hard to overstate the significance of automation. Processes that once took dozens of people can now be done with only one or even no one, giving businesses in virtually every industry an opportunity to cut costs and boost output. Breweries are no exception; automation lets you put everything from bottling to canning to sanitation on autopilot. While there are many benefits to automating these activities, there are also significant costs to doing so. Make sure to weigh these factors carefully before you make the transition.

Advantages of Brewery Automating

One of the greatest advantages of brewery automation is that it allows you to cut your operating costs significantly. By relying on machines and software to carry out essential activities, you can perform those activities at a fraction of their current costs, all while freeing up your employees to focus on strategic planning and other big-picture activities. Granted, automation equipment does require energy and maintenance, which can be expensive. But the more activities you’re automating, the more likely it is to be a net benefit.

Besides cutting operating costs, automation tends to improve consistency. A greater reliance on machinery means that you are less vulnerable to human error. You thus won’t have to worry as much about incorrect product assembly, incomplete cleaning services, and other such issues. This further lowers daily expenses while letting you improve product quality, leading to greater customer satisfaction.

Costs & Negative Consequences

For all the advantages of automation, it isn’t an unqualified benefit. Automation equipment is expensive, and while your savings on operating costs will eventually outweigh these charges, many breweries don’t have the cash to make this investment in the first place. Even if you do have enough money for such purchases, you may not want to tie it all up in capital equipment. Doing so leaves you with less money to spend on other needs. Given that your costs may suddenly go up in response to some emergency or supply shortage, you don’t want to be caught without cash on hand.

As serious as this problem is, there is a relatively simple solution: working capital. Instead of buying the equipment outright, you can use a working capital loan to pay for it, and then repay the loan using the profits that the new equipment helps you generate. In effect, you will be spreading out the cost of the equipment over time rather than paying it all at the beginning.

Dimension Funding offers working capital loans and leases for automated brewery equipment and a myriad of other business purchases. For more information, visit our website today.

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Month: March 2018