Is There a Fast Way to Scale a Business?
Ron Malhotra
Director - Ron Malhotra Real Estate | Black Footed Business Advisors | International Speaker | Author | Leadership, Business & Wealth Mentor To Executives & Entrepreneurs | Ex-Owner of Maple Tree Wealth Management
For business owners who have built their businesses from scratch, the answer is probably a clear NO. Anyone who has built a business from the bottom up, knows that a successful business is usually a result of years of toil, iterations and bouncing back from setbacks.
However, the question is, is it possible for a business owner to improve scale and profitability, in a fraction of the time that it takes to build a business??
The answer is YES.
Remember, I’m claiming that you can scale fast. Fast doesn’t mean easy - or simple for that matter! The method that I am referring to is quite simply “Acquisition”. Acquiring an existing business and merging it with yours.
Last year, a client of ours who had ambitious?expansion goals, undertook this exact strategy. We determined that acquiring an existing competitors business, made a lot of sense for them due to the following reasons:
- It could achieve economies of scale
- It would open up a new market for them
- It could reduce their supply chain cost
- It would provide them with the ability to offer two additional services to their existing clients.
If facilitated and executed properly, the above benefits could speed the growth of revenue, and very likely also enhance their business valuation.
We worked with the client to formulate a plan which would involve:
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1. Identifying the attributes of an ideal business for acquisition
2. Identifying the intermediary parties who would have a list of these ideal businesses
3. Drafting a non-binding letter of intent?
4. A due diligence checklist
5. Putting together a list of business and acquisition terms
6. Working out a financing strategy
7. Work on a transition plan post acquisition.
Assumed to be the exclusive domain of corporations, the fact is that acquisition of an existing business (when done correctly), can be a very efficient way to add digits to the bottom line of a small to medium sized business.?
For ambitious business owners, who are not deterred by arduous sweat labor in the short term, the ability to build equity in a business without putting in long-term sweat equity, the rewards of acquisition can be sweet.
Ron Malhotra | Advisor & Mentor to Ambitious Professionals, Visionary Entrepreneurs & Business Owners
| Comprehensive Financial Planning Solutions | Personalized Financial Guidance | Tax Efficient Corporate Estate Planning | Tax Avoidance Strategies |
3 年I know someone who had a private business that at a time was the 3rd fastest growing private company in north America and that was directly related to strategic acquisition growth.
Landscape Designer/Admin at Amentum-
3 年No one owes you anything You’re not entitled to anybody’s money or help. Nobody owes you anything. Thank God for good health and earn your money. Entitlement ends where gratitude begins. Help and expect nothing in return. Do good and go your way. Educating a child is not your personal investment to reap in your old age. When you empower others, you’re investing in them. If you want lasting peace, manage your expectations. There’s nothing you’ll be given; you have to go out and get it. Even though God promised the Israelites the land of Canaan, they had to conquer thirty-one kingdoms. Throw away your blame list and become all you’re capable of becoming. No one is predestined to be poor and miserable. Each one of us can better our lives and make a difference in the lives of others. Don’t neglect your duties. Do homework with your children. Spend quality time with your partner. Pay your debts. Be passionate on your work. Finish your assignments ahead of schedule. Most people are average. If you discipline yourself to go the extra mile, you’ll be outstanding. Never be accused of performing below expectations Never wish you had extra time – . We all have the same time. Make the most of your time. Eliminate time wasters
Br consulting co, (food services)
3 年Yes! The picture says it all, thanks for sharing
Development Officer at LIC
3 年Very inspiring and deeply insightful Ron Malhotra I am standing in that position right now. Have had 22 years in client facing marketing role. Now wish to scale up with clear focus on recruiting the full total of 22 years in one and next doing new business of the scale which matches the total of last 22 years in a single year. Plan of action 2021 to 2023 July. Need Your powerful insights as also your valuable opinion. Lots to learn from You as always Ron Malhotra