Could an Alternative Revenue Stream Help Build Business Resilience?
Government intervention to cushion the impact of Covid-19 on business has been a lifeline for many. The Job Retention Scheme and business loans may not be perfect but the Treasury, rightly, prioritised urgency over perfection.
The support helped many businesses to ride out the initial shock and to survive. But that level of support cannot continue indefinitely. As the threat from the virus recedes, so will the market support. This is when many businesses will be at their most vulnerable.
Cash reserves will have been run down and work might pick up at a slower pace than before. Costs will likely grow faster than revenue and certainly faster than cash collection. If your only income stream is from core business activities your short-term options are limited.
Resilience and Asset Use
When it comes to resilience, alternative revenue streams from non-core business activities can be vital. So maybe this is a good time to look at the assets you own and explore whether they could be repurposed to provide alternative revenue streams to build resilience.
Land used for car parking is one of the most under-utilised assets in our economy. Over 80% of car parking is surface-level only, which is a highly inefficient use of a valuable asset.
Put in an additional parking deck and around half of that space could be used for something more productive. Any firm or organisation that owns land currently used for parking cars should be exploring their options for using these assets as part of their longer term-management of business risks.
Halve the land area set aside for parking and you could sell some of your land assets and invest the money. Or you could sell the land or develop more business space on it with a partner and become a landlord with an enduring revenue stream.
Post-Covid, the Government will continue to invest in building new social housing. The private rented sector will also continue to grow. In both cases, they need land, particularly in urban areas where it’s in chronic short supply.
Is it hard to add an additional parking deck to release development land? Not at all! The Osborne-Siderpark modular parking solution can be installed quickly, with minimum disruption and without the need to dig foundations.
The solution includes planning, design, erection, and even support with funding if needed. And, being modular, it is also possible to erect it in stages as part of a phased release of value. Contact us and we will be happy to help you explore your options.