You can’t have it all. However, you can do something to still be in the field of your choice. It is possible to do this without spending too much time mastering new skills within a short timeframe (which is, by the way, not practical and effective in the long run). This is where the practice of entrepreneurship through acquisition becomes a top choice by many.
Benefits of Getting Multiple Agencies for Your Business
There are two main benefits that you can get if you choose the right businesses to buy:
- Boost in stability and ROI.
- Improvement in a specific area of your business by focusing on specialization.
If you play your cards well in acquiring new marketing agency, you will boost your company’s productivity in the long run. You’ll also get more opportunities to delegate important tasks to other members of the team. This will help free up more of your time so you can venture into more business acquisitions.
Points to Look for When Acquiring Businesses
No matter what type of business you’re looking for, there’s a set of traits you’ll want to go for. Get started by checking for these aspects:
Quantity is not the only thing to keep in mind. Do their clients have a long-term working relationship with them? The client should be working with them for at least one year to be considered long-term. This is important because it provides you with some information on their possible streams of income.
Are all the areas covered with the help of other people? Check for signs of under-delegation and overworking in the company. If these are present in the business, consider if you can resolve these issues once you buy the company. If not, you may have to look elsewhere.
Are the software and processes efficient enough to accomplish the tasks within a reasonable timeframe? See if they are stable and established enough to operate even if you’re not hands-on within a certain period of time.
Is your vision and mission in line with what the other business has in mind? Is the culture similar to what you have in your workplace? Do they have practices that you think will sync well with the ones you have in your company? If your answer to these questions is a “yes”, then there’s a good chance that buying their business is a good move based on the common denominators. Keep in mind that their team should have an aligned culture with your team as well.
Financing for Business Acquisition
So, how do you finance for business acquisition? Here are a few options:
This is considered the most common and the simplest way to finance your business acquisition. You may acquire funds through home equities, retirement funds, and your own savings. However, if you’re going for a relatively large-scale business, you may consider other funding sources to augment your spending power.
Before you apply for a bank loan, make sure to maintain a good credit score. If you still don’t have a credit score, you should start building it up. Doing this will help increase the odds of your loan application getting approved. You also need to show “concrete” assets to further up your chances of getting a loan. Aside from physical properties under your name, you should also have the non-tangible ones to show. If you can prove your good track record in your field, this is generally considered as well.
Also known as small business administration, this is an alternative type of bank loan that you can apply for. It may be a bit misleading, but money isn’t something that SBA lends to you. Instead, it provides reassurance to banks that provide the actual money. It’s like setting up a series of security measures for banks so they won’t lose funds in the process. To do this, the SBA and the bank separately set up guidelines and criteria that you have to meet so you can get the loan.
Moving Forward: What’s Next?
Once you partially or fully acquire a business, your next step is to maintain and improve it. Consider this as a step towards your own business growth. Looking for innovations and learning new crafts are some good ways to improve how you run your business. Make sure to add constant networking and prospecting for new clients into the mix as well.