Many business owners don't want to even fathom buying another business as they have so many headaches with the business they have. However, would you consider that some of your headaches may get solved if you were to buy the right business that expedites your goals and gets rid of your headaches?
Here are 5 common business problems that can get resolved when you buy another business:
- Talent: Are you struggling to find good talent? Do you have risk if the people you have working for you today? Buying another business to acquire additional talent is trending right now. It is a popular strategy for good reasons. By acquiring a company for its talent, you can immediately get access to an entire team with experience in your industry. This saves on recruiting time and costs.
- Customers: Are you losing customers to competitors? If customer lost isn't due to customer service and/or product or service quality, then maybe buying another company that has a strong customer base is the next best option. Can you imagine what it could be like if you doubled your customers tomorrow (and had the team to deliver)? Buying another business to acquire more customers can be faster and less expensive than it is to organically grow your customer base.
- Leads: If you rely on advertising, media, websites, social media, and more to gain leads, you already know advertising can be expensive. However, if you were to acquire another company similar to yours with an established (and cost effective) lead generation operation OR acquire a media company that is already effective, you can immediately benefit from the rewards.
- Control Your Value Stream: Are you struggling with vendors and partners you rely on to deliver your products and services? Are their costs negatively impacting your profits? Consider vertically integrating with businesses within your value chain. Take a look at anyone upstream or down stream from order to delivery. Vendors, suppliers, distributors, warehouses. Any middleman business that you could purchase could reduce your costs and even improve customer service.
- Increase Sources of Income: Is your cash flow lumpy with a long tail to recognize revenue? Take a look at businesses that provide more consistent income or recurring revenue with products and services that align with your customer's needs and your industry. For example, if you are in the new residential construction industry, sometimes project completion can take 6 to 9 months if all goes well. Consider acquiring another business that is also within your industry that provides residential maintenance with maintenance agreement contracts.
Need more ideas? Want to brainstorm your challenges and how to solve them? Let's talk.
