With a little bit of help from Bizcap, this show bag business has been able to thrive – despite the global pandemic and changing market conditions.
From Cairns to Adelaide, Bathurst to Hobart, Ipswich to Melbourne, shows are a big part of life across Australia – and a show bag is a crucial part of the experience.
However, when Covid-19 happened the shows stopped, and affected everyone involved, including the businesses supplying the showbags.
And it was one such business that gave Bizcap a call for help.
Covid stops the show
“All of the shows were locked up, and it was difficult because we were just waiting – waiting for the government to control it, to open back up,” says our showbag client.
No shows, of course, means no income for many businesses involved in the show world. And that, combined with changing market dynamics, prompted our client to turn to Bizcap for some financial support.
“I needed the money to bring the stock – the toys and novelties for the show bags – in from China,” he explains.
“The pandemic has pushed order times out. Instead of the order shipping in 30 days, it’s shipping now in 60 or 70 days. You’ve got to place your order early but it pushes your cash flow even further.”
In addition to the added pressure due to extended shipping timeframes, many of the shows are facing cash flow problems of their own, and asking for payment for a presence at the event a lot earlier than they used to.
To date, the business has had 10 loans with Bizcap since 2018, and it’s helped not only keep the show on the road, it’s helped it flourish, with turnover increasing from $1.2m pre-pandemic to $2.2m.
“The way Abraham and Adam [at Bizcap] helped me was fantastic,” he says.
Growing the business through Covid-19
While Covid-19 is still an ongoing concern, the agricultural shows, which feature livestock, fairground rides and entertainment, have been able to restart, and they came back with a vengeance.
“The figures were all up on the previous year before lockdown,” he says. “I’m not sure why that is – maybe it’s due to the fact that people haven’t been able to go away, or there are more people just wanting to get out and have some fun after lockdown.”
Needing to get hold of money for investment or cash flow purposes is a regular occurrence in business – and when that time comes money is needed quickly.
“We’ve worked with banks before and sometimes it takes two months to get an answer,” our client says.
“Because I’ve got Bizcap next to me it makes it easy. I can relax, because I know if I need something I can just pick up the phone and Bizcap will help me.
“It’s kept my business afloat during a really tough time, and I just can’t thank Bizcap enough for the support.”