How to Budget for Your Business’s Renovation
There’s a lot of information out there about how to budget for your business’s renovation, so we’ll give you a bit of the quick-and-dirty so you can get going on demo day as soon as you can!
Determine Total Renovation Budget
How much do you want to spend on this renovation? It’s probably going to be more than you think, especially if you want it done well. Consider your financial resources, projected return on investment, and the scale of the renovation. This will serve as the starting point for allocating funds to different aspects of the project.
Estimate Materials, Permits and Licenses, and Labor Costs
Research and gather estimates for materials and labor costs related to the renovation project. This includes finding professionals to help you along the way, such as architects and contractors. Make sure you find multiple quotes to make sure you’re getting the best deal. This is also an opportune time to research the permits and licenses that you’re going to need to start building, so you can make the most of the new space when it’s ready!
Budget for Equipment and Fixtures
Once you have your new space, you’re going to have to fill it up with stuff, right? Make sure to budget for this too, or else you’ll just have a random new empty space, and that’s not much fun. This may include seating, displays, shelving, lighting fixtures, signage, or technology upgrades. Research costs and prioritize based on their importance and impact on your business.
Have a Contingency Fund
Set aside a contingency fund of around 10-20% of the total renovation budget. This serves as a safety net to cover unexpected expenses, unforeseen changes, or any adjustments that may arise during the renovation process. We all know that with rising construction costs and a still shaky supply chain, having a bit of extra cash on hand is going to be crucial.
Have a plan for Marketing and Promotion of your new renovation!
Once you have your renovation complete, you gotta let people know about it! Make sure there’s a portion of your budget for marketing and promotion efforts related to the renovation. This includes creating awareness, advertising the updated space, and communicating with your target audience. Consider digital marketing, print materials, or hosting a grand reopening event to maximize the impact of your investment.
Research Funding Options for Your Renovation
As you’re budgeting for your renovation, you’ll want to consider how you’re going to pay for it. Sure, you could take out a loan from a bank, or some online lender, but what if you could get your community involved in your renovation from the very beginning? Local businesses like Peekskill Coffee in New York and Akwaaba Tea Room in Philly have used Honeycomb investment offerings to pay for their renovations and to drum up excitement about said renovations with their customers and community!
From Demo Day to Opening Day, Honeycomb can get your customers involved with your renovation
Your customers are already super excited to see what you’re going to do with your space’s renovation - and they want to invest in it! To learn more about Honeycomb Credit investment offerings, fill out the form below!