10 years ago, Craig Ramus made a business venture that would change his life forever. An opportunity arose to purchase a chain of failing convenience stores across West Sussex with the intention of transforming them into thriving businesses.

The task was never promised to be an easy one, but Craig still cites the experience as surprisingly challenging. Managing staff and customer footfall was difficult, but the biggest barrier to the business’s growth was a lack of property to house the stores.

At Crispcap we arranged an unsecured business loan for Craig to overcome this obstacle and reinvent the business into a profitable operation and a thriving hub of community. He says that getting a business loan was the key to the store’s growth. Read the success story below.

How Did Warnham Village Stores Start?

Acquisitions have always played a huge role in the UK’s economy. Whilst the financial industry accounts for most of these deals, acquisitions in retail are still rife in today’s business landscape.

Craig purchased 8 village stores, all of which had their own range of unique issues. They were overstaffed and showed a pattern of diminishing returns that couldn’t be resolved. 5 of the 8 businesses that Craig acquired went bust shortly after they were purchased.

It became clear that a new approach to business would need to be taken if the remaining stores were to survive, and a cash injection could be the last chance to salvage them from inevitable failure.

What Challenges Did They Face Before Getting a Business Loan?

Craig was able to narrow the business’ issues to 3 primary factors that needed to be resolved.

Property

The stores were using rented space to conduct business and causing a significant dent in profits. Craig knew that if these stores were to thrive, he needed to take back control of their premises and, consequently, reduce running costs.

Staffing

Craig discovered that staff wages were driving up his running costs far more than they should, particularly as the stores were overstaffed when he took the businesses on.

Staff wages are typically the biggest expense for UK businesses, with the retail sector spending up to 20% of their revenue on employee salaries. Craig cited the inflated number of staff he inherited as one of the biggest challenges to overcome.

Retaining Customers

After the previous line of Warnham Village stores failed to meet expectations, Craig had a difficult time attracting customers back to the business. Many people didn’t recognise that the store had a new owner and new model moving forward.

How Has Getting a Business Loan Helped Their Business?

Craig contacted us to apply for a loan that would resolve his most pressing issue, buying a property for one of the Warnham Village Stores.

At Crispcap we make getting a business loan an incredibly simple process, and within a matter of days from his initial inquiry we had the funds in his bank account. This meant he could buy the property and afford to repay the loan in monthly payments. The store would steadily grow in revenue, making whilst the village stores steadily grow in revenue. Plus, the amount of interest is spread into manageable amounts too.

Craig says that commercial finance has unlocked phenomenal potential for his business. He feels more financially stable with fixed overheads that don’t have the risk of increasing, unlike rented property. Planning for the future has become far easier.

Buying the commercial property is also a great investment as it will likely appreciate over time, offering a large sum of profit if Craig ever sells up. Not to mention some of the tax benefits that come from owning your place of business, including mortgage deductions and capital allowances.

Craig has plans for the four-bed flat that flags the store. He’ll be separating and selling it to raise some funding for another commercial property that can benefit the business further.

Since the property has been bought, the store has also seen a more streamlined team of staff and more customers than ever before.

What’s Next For Warnham Village Stores?

Now that a Warnham Village store has found a permanent residence, Craig is optimistic about selling the flat above it to buy another commercial property. However, he’s also given us a heads up that any form of commercial funding will come through us. He found the process of getting a business loan with Crispcap to be a quick and a stress-free process.

Craig is more than happy with the stores’ growth and he’s seeing new and returning customers shopping with them every day. He hopes to continue this financial success for years to come.

The store has always been incredibly proud to serve the Warnham community in West Sussex and Craig wants to continue this community spirit. He’s looking into more ways to support local events and initiatives to create a shopping experience that brings residents together.

We look forward to following the store’s financial success and the productive impact on their local community.

How can you get an Unsecured Business Loan?

At Crispcap we make getting a business loan easy. There is no impact on your credit score from our 30-second application form, simply submit your eligibility criteria here.