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Build, Buy, or Partner? Cont’d... If choosing to build, buy, or rent, now ask whether you can afford the outlay for that duration. How will you finance the investment? Will your business be able to survive until the hoped-for profits begin rolling in? Then throw in a wild card–like a pandemic or supply chain disruption. Life is notoriously unpredictable, so be very conservative with your estimates. See whether you could hold out for double or even triple the length of time until you think you’ll realize a positive return. How would you pay for operations and extra costs in the meantime? Project your working capital over the duration to understand the impact. ROI for Warehouse Expansion Net revenue Investment Break-even Months after expanding warehouse Timing is everything. Calculate how long it will take until your investment in extra warehouse space generates a profit–and make sure you can survive any cash flow shortfall in the meantime. Time to Expand Your Ecommerce Warehouse? A Guide from Extensiv 8

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