Entrepreneurs need their own team to navigate the sales process.
posted by: Lauren Altschuler
Apr 9, 2019 11:00:00 AM
Case study: A local manufacturer
...with about $75 million in annual sales, was revenue constrained. Every day that they lacked additional office and manufacturing space meant lost revenue because they were unable to accept new projects. Time was of the essence so they reached out to Cresa Real Estate to acquire an adjacent empty lot and construct a new building.
Anyone would agree this should have been a slam dunk for Cresa, but instead, Cresa recommended a strategic analysis of the business needs first. This crucial step took this business in an entirely different direction.
If you are planning an expansion, do you need to hire more employees? If so what positions need to be filled and how many? Does the local labor market support that expansion? Can you find enough of the types of employees you need in the area you are looking to expand?
Assessing the manufacturing companies' current circumstances and future needs, Cresa concluded the company had tapped out of the local labor market, so a new building on the adjacent lot would have created an additional problem - how to fill it. The analysis revealed that the employees the company needed were unwilling to commute from across town, where, 35-40 miles away, there was untapped talent. So they provided several leasing options in that area the company could consider retrofitting for their expansion.
The strategic analysis Cresa recommended transformed what initially made sense- acquire adjacent land and build new, to instead, leasing and re-configuring existing space across town resulting in cost savings, expediency and access to an untapped labor market.