Leaning on Kabbage to Plan for Seasonal Uncertainty
In his 40 years as a business owner, Ted Dellas has started and managed companies across industries, ranging from restaurants to real estate companies. He started his most recent venture – LeisureTime Warehouse – in 2010 after seeing potential in the specialty retail space.
Twelve-hour days are the norm when selling and installing pools, hot tubs and saunas, Ted says. He’s one of the few people willing to put in the time to make the business worthwhile — and when the busy season picks up in May, all the hard work is worth it.
Sunshine is Good for Business
The buying cycle for pools is seasonal, especially in Ohio, where LeisureTime Warehouse is based. Business booms for five months of the year, leaving Ted the challenge of managing cash flow uncertainty during the slow season.
He knew he needed additional financing, but Ted wasn’t satisfied with his previous experience taking out traditional small business loans. After the 2008 recession, his local bank folded and revoked his line of credit with limited notice. He was forced to sell his previous business to stay afloat and provide for his family. He then started from the ground up with LeisureTime Warehouse.
Ted looked into online lending options but wasn’t happy with the interest rates and withdrawal limitations. Unlike other lending options, the process to receive a Kabbage loan was simple and straightforward. Ted qualified for a Kabbage line of credit the day he applied and couldn’t believe how convenient the process was. “There was no stress – all business owners should consider applying.”
Now, Ted utilizes Kabbage funds every month and keeps track of his account on the mobile app.
Even during slow months, access to the extra funds gives Ted the peace of mind that all operation costs are covered until the next busy season. Business is particularly slow at the end of every year — but Ted is reassured he can meet payroll with Kabbage.
Planning for Future Winters and Summers
LeisureTime Warehouse has grown to $4 million in sales and now has 15 employees. Ted’s goal over the next three years is to reach $8 million in annual sales.
Ted is active in the local business community and counsels budding entrepreneurs. He suggests that those starting out take the time to truly understand their business opportunity and the work required to realize it. “Come up with a plan to be successful,” he advises. “It’s really challenging, but for the person who’s willing to work and has a fire burning in their belly, there’s no better way to live.”