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How To Grow Your Company By Buying A Business

Growing a company organically can be a long and arduous task. Developing products and services. Marketing and selling. Building a relationship with customers whilst all the time worrying about the costs and whether your business will work.

An alternative way to achieve a fast increase in the size of your company is to make an acquisition. This means buying a company that you can merge with your existing business. Sometimes the investment you would have to make to reach a certain size in 2 to 3 years can be more than the cost of acquiring a company that could get you there tomorrow. So it’s worth considering.

This can even work if you are starting up. We raised finance for starting a business and, before we even embarked on implementing the business plan, we found one of the main competitors in the market was up for sale. After agreeing it with our investors, we made an offer and acquired the company for a good price. Within 6 weeks we had a fully fledged business completely up and running, with an established name, services, customers, offices, staff and a year’s worth of marketing already done for us. It jumped us at least 18 months ahead in our business plan and probably saved us over £500,000 in costs.

If you already have a business or you’re thinking of starting one, then it’s worth taking some time to investigate the opportunities in your chosen market and seeing what’s available. One of the biggest advantages of buying a business is that it can bring a ready-made customer base. And whatever business you’re in, you’ll know that the costs of acquiring customers can be significant.

You can find businesses for sale through the internet and through specialist business brokers. You can also find them by talking to others in your industry, including your competitors.

You’ll most likely need help from professional advisers when you decide to actually make an acquisition but your initial investigations can be done at a low cost and with minimum disruption.

It’s up to you whether you choose to look for a business that’s smaller, the same size or even bigger. It really depends on what your plans are. You may even find yourself inspired to move into a different industry when you find what’s available.

Of course, acquisitions don’t come without their own special challenges, so you’ll need to understand the risks and rewards involved in buying someone else’s business. However, if you set clear objectives and create a solid action plan then it’s something that can really work for you.

Make a list of what you want in your own business. This could include more customers; more products or services; bigger offices; more experienced staff or any other items specific to your needs.

Then start your search for companies that fit your criteria and at the same time calculate how much it would cost you to achieve all your objectives by doing them yourself from scratch. Once you find some companies that match what you want, you can start making approaches and offers. Your calculations will show you how much you want to pay by comparing what the acquisition would bring you against what it would cost to build it yourself. And you may be able to pay a lot less than that.

Just imagine, after reading this, you could find yourself in 6 weeks time with a business twice the size of your current one and with many more opportunities to explore.

How To Start A Carpet Cleaning Business

Securing Health through Green Cleaned Carpet

- When the carpet is full of dusts, pet urine, fingernails, blood, ink, spills and many other stains that can come from pancake syrup, coffee milk, wine and many others: it is mostly to fall apart. Since household and commercial buildings uses carpets wall-to-wall basis, the dirt is easily absorbed by the carpet and the dirtier it is, the faster it accumulates more dirt. Carpets collect dirt faster than any other household equipment. The life cycle of mites, molds and other bacteria will always continue when the carpet has not been cleaned deep down. Dirt and microbes is detrimental to everyone’s health and they might live in to your carpet. Professional carpet clean service aims not just to clean perfectly the outer outlook of your carpet but also its inner structure that makes your carpet clean out and in; and avoiding early weakening. It will also benefit the health of their family and co-workers, especially individuals with allergies.

Minimal Start up Capital

- In comparison with other business opportunity, the carpet cleaning services offers small amount of start up cost or even minimal. Carpet cleaning business is indeed simpler and affordable. However the return of profit/investment is indeed profitable! Some business owners get their capital from their personal savings then they will reinvest their early profit to further expanding the business afterwards, enthusiastically. Starting carpet cleaning business will need small capital of at least $1000, leasing your carpet equipments as beginners for the business, and a good vehicle for transporting your carpet cleaning equipments. In addition, you will also need to have cleaning chemicals and water supply. And since you will do your services at different homes, it is also preferable if you have proper insurance and bond credentials.

You are the BOSS

- Since you are the boss, pride and the joy of independence however, you’ll need to think about the freedom that might lead you into untoward events such as business failure. Nevertheless, you might consider working part time of full time likewise you need to be available when there is a customer waiting for your carpet cleaning service. You need to guide yourself with business ethics as to with guarantees you a better understanding of working for your own and the idea of earning much as you visualize your business before establishing it. Nonetheless, you are still the boss of the business!

Believe it or not! It is rated for being high stability.

- It is an advantage for having even basic business knowledge in starting your venture, for initiating a carpet cleaning industry is easy to start and operate for which only requires small amount of start up costs. According to business evaluation, thus far carpet cleaning industry has a very high stability rating. Indeed, it is an easy-to-learn business that can rapidly grow and can most assuredly bring you the earnings you desire.

For more info: How to start a carpet cleaning business

We’re Too Small To Need A Business Plan!

Every bit of evidence indicates that for a business to thrive and grow, and to ensure it’s protected from uncertainty, it needs a plan; the plan shows that you have thought about the opportunities and threats, about the objectives and the targets, and that there is a system in place for measuring progress, so that in the event of deviation immediate corrective action can be taken.

Unfortunately, I hear all too often “we’re too small to need a plan” or “we don’t have the time to spend on that sort of thing.” These are the words uttered by companies that later find themselves in deep financial difficulties because they failed to anticipate. I have worked with a significant number of such companies, and unless you have a stockpile of cash, a very understanding bank, or an alternative source of funds (like re-mortgaging the house), the line between survival and failure can be very thin.

Consider this. Is it better to invest your time in stabilising the business and growing the profitability, confident that you have the contingency plans in place to deal with most eventualities, or in fire-fighting and dealing with the issues as they arise, uncomfortable in the knowledge that you’re just waiting for the next crisis to happen?

The Business plan has three primary functions:

  1. To serve as an Action Plan
  2. To serve as a Road Map
  3. To serve as a Sales Tool
  • Action Plan. A business plan will help you to pull apart the pieces of the business and examine each piece by itself. So instead of one large problem, you have a sequence of smaller problems. And by solving the small problems, the large problem is automatically solved. So writing a business plan can help to move you to action, by breaking down a seemingly insurmountable task, like growing the business, into many smaller, less intimidating tasks.
  • Road Map. With an existing company the business plan is an invaluable tool to help keep you on track, and moving in the direction you want to go. In the hurley-burley of daily business, it is very easy to lose sight of your objectives and goals – a business plan can help to keep you focused. A business plan can also serve to help others to understand your vision, including suppliers, customers, employees, friends, and family.
  • Sales Tool. Perhaps most importantly, a business plan can serve as a sales tool. The business plan indicates how much cash will be needed to fund future operations, it also provides the framework for the “what-if” analyses; what would happen if you were able to increase revenues by 25%, what would happen if you lost that major customer, what would happen if you were able to cut costs by 3%.

Included in the business plan are the Sales and Finance Plans. These document need not be exhaustive, but they do provide a valuable excuse to think about the future, and to spend time working ON the business rather than working IN the business. We all want our businesses to be working for us, and not as most commonly happens, for us to be working for the business.

For more useful information on writing business plans and growing your business, go to http://www.eunus.com