Local businesses in and around Exeter can benefit by utilising their best resource – spare capacity. If you are hotel with vacant rooms, a restaurant with empty tables, a business with unfilled appointments, or stock simply not moving, then the BBX platform could be for you.
Let’s admit it every business has struggled with having spare capacity at some point. You have more time to do work then you have customers ordering work. Could you sell more stock; sell more covers; sell more rooms; fill empty spaces – without increasing FIXED costs?
When it comes to spare capacity there are two types of business owner; Ostriches and Eeyores.
Ostriches stick their heads in the sand and pretend there is nothing wrong, they are working all the hours. They are adding side hustles left and right as they try to fill the gaps in their own business. But still their businesses more often than not fail. Nearly 80% of all new businesses fail in their first 5 years!
Then we come to the Eeyores, these business owners know they have a problem, they know they have spare capacity and need to fill it. But they see this as a dangerous problem that is unescapable, they are the fatalists.
There are 2 distinct failure points – in the first 12 months where they are simply under-capitalised, lose the passion or fail to come to grips with the day to day reality of spinning plates, juggling balls and standing on one leg (Eeyores)! The other is during a growth phase where supply chains and dealing with employing staff cause cash flow shortages which end up in crises if not dealt with soon enough (Ostriches).
But both these groups have missed what is right in front of them. Spare capacity is not the killer, it is the opportunity. It is you who decides if spare capacity kills you or not. What if you could fill that capacity? Think how much more business you could do? How much your business could grow? So, I hear you cry what is the answer?! Well let me explain.
The magic (or not so magic) answer?
Take an example – A hotel has 20 rooms, it sells them for an average of £100 a night and has a yearly occupancy of 70%. This would mean it generates an annual income of £511,000 [a good business!]. But what about the 6 rooms on average that remain unsold every night? In this case once tomorrow arrives the revenue opportunity disappears forever! The value of this unsold capacity is a staggering £219,000!
What would the hotel owner do with this additional revenue if some of it could be captured? Do more marketing; do some upgrades to the property; lead a nicer lifestyle; you can probably think of many things!
Do you want to be able to spend more on your business? Or your lifestyle?
BBX UK [ The Bank of Spare Capacity ] work with businesses of all shapes, sizes, verticals and stages of development from pre-start up to multi-national corporations. BBX offer a free consultation with one of their growth analysts to see if your circumstances suit their solution. The BBX platform is based on a no win; no fee guarantee that states that if they do not manage to attract new customers to your business there is no fee!
In addition BBX offer interest free credit to allow you to buy things to grow your business gain a better lifestyle or sell your business for a higher amount – this also has no set repayment time frame and you pay back any
loan by taking on more customers when you have spare capacity!
If any of this is of interest you should visit the BBX website or call Jon on 07904 146136