Have you ever thought something looked easy, but when you started trying it yourself you found out there was much more to it? Recently, I have run into some challenges with a project I have been working on for my business. I would not say I thought it would be easy, but I definitely did not think it would be this challenging. We have a signed contract to purchase a commercial property for my business. The intent is to build a larger building in a more favorable location to help us generate more business. There have been several challenges along the way, which were expected and a few challenges along the way that were not expected.
A few of the expected challenges include negotiating price on the property, getting a ratified contract, obtaining funding, and selecting the right builder for the building. Since I live in a town full of farmers that potentially could buy up available land much easier than I, I was fortunate the property was listed in the middle of their peak farming season. I do believe this moved their attention to their farms and not purchasing land. I have lost bids on land prior due to farmers swooping in with their bags of money and power, which resulted in me not winning the bids. There have been a few things in my favor during this process and I am very grateful for that.
This is where it gets a little bit sticky and we are not out of the weeds yet. In actuality, we are just getting started and the challenges are exciting, yet scary. For one, due to the property being in a highway-commercial zone, we do need to bring it to the planning board. We will also need to gain approval from the Pine lands, which can get complicated. We found out that there is city-water available to our property, but may not have city-sewer. We are still learning more about this each day, but if we do not have access to city-sewer, then our expense can easily shoot up significantly. We can put a septic system in, but this will be modeled after our specific needs and does not help our resale value down the road. City-sewer would be most beneficial to us if we can get it for $20,000 or less. This will be the most expensive toilet I will have owned in my life. On top of this, we will need to get our lawyer involved in addition to a hired engineer to survey/layout the property.
It is easy to throw in the towel and give up on the whole thing, but where does that leave me? It would surely not help my business expand and would put us back to square one. We are purchasing the property for 1/3 its value, which is absolutely phenomenal. After development of the property, the value will shoot up significantly. I realize this project is part of a larger long-term strategy and I need to keep reminding myself. We are not going to erect this building and move in as quickly as I once thought, but by sticking it out, we are going to get some major long-term benefits. It is a highway-commercial property, which will continue to increase in value. I must keep reminding myself of the benefits and why we are doing this.
If you are in a similar situation, think about the pros and cons of each side. Realize that there may be a bigger picture you need to look at and not just the stresses being caused by today’s challenges. Since much more effort needs to go into this project, my father is taking on more responsibility in sales to help our business maintain cash flow. New strategies are being created to generate more cash. We are working as efficiently and effectively as possible since our time is limited. The appropriate adjustments are being made to increase our chances of success. I will be writing much more about this in the next couple of months as new discoveries develop.