Lendinero's blog on Growing Your Business
Why expand your food product line? Many businesses may not have a need to expand their current product line. You may be making a lot of money with the products your carry. However, the food industry is open to many risks. This story may open up your eyes. Food distributors who were importing beans from Central America were reaping the profits for many years. Lendinero had the opportunity to assist several importers of beans in obtaining financing. However, during the loan process the Lendinero loan originators wanted to learn why these distributors were in need of cash and wanted to find out how they could assist these businesses with their growth objectives. During the process the loan agents and processors were shocked at the financial statements they reviewed. Over 10 companies were selling $5 Million to $10 Million per year two years ago and year to date there sales had dropped from $1 Million to $3 Million. These companies had dropped over 200% in revenues. Many of these companies expressed the issue they had faced. Central America beans were affected by the rainy season and there was scarcity of beans. Central America could not meet the buying demands, fill the orders, and the price of beans shot up to the roof. As a result many of the U.S. importers were stuck and they did not know what to do. This may happen to you if you rely on a few products. What if these companies had reinvested their profits when times were good to expand their food product line?
© 2015 Lendinero