Double your business in 12 months

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Double your business in 12 months

Growing your business can be achieved in several ways – by increasing sales or through business acquisition or merger. Organically growing your business in tough market conditions is the slower option as you are competing in a marketplace where
your competition is going in sharp to hold the business and there is a general reluctance on the customer’s part to risk it with new suppliers.

Building your business through incremental sales can be a long, hard row to hoe so if you want to show substantial growth in as short a time as possible, then acquiring an existing business will take you much less time.

A tough market is a great time to buy your competitor. A challenging market will enhance any existing weaknesses a business may have. For example, poor management, or not making full use of its assets. This could result in the business being undervalued and making it ripe for the picking.

If the business has complementary products or services then it may meld well with your business, instantly increasing your sales and importantly, your bottom line. You will increase your client base and market share and your company growth will accelerate. If you have been struggling with regional or national growth, it may well be less expensive to buy an existing business and at the same time, reduce your competition.

Acquiring an existing business may give you access to new markets or valuable assets for further development. Better production or distribution facilities are often less expensive and quicker to buy than to build.

Long-term a suitably targeted business may offer you opportunities to consolidate and rationalise production, plant, marketing and distribution aspects or services reducing costs and overheads, and potentially increasing your purchasing power.

Of course business acquisitions should occur as part of a strategic plan. Identify long and short-term objectives, desired personal, strategic and operational goals.

Develop a profile of the type of business that would best suit your needs. Then search the market for a suitable business match.

Check the company’s financials and assemble a team of professionals to help you through the process; your banker, accountant and lawyer should all be involved to ensure there are no nasty surprises and that all key elements have been identified.

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