Business Acquisition, Fastest Way To Own A Business

If you been wanting to have your own business company but have no interest to begin the new one from the scratch, taking the ownership of an existing company might be the suitable choice for you to become a business owner. There are many benefit to buy an already establish business company rather than build it from the start.

One of the biggest advantage is that you do not have to spend a lot of effort and time to take care the company. The acquisition of a business company often consider as a short cut to enter a business, where you take other people hard work, effort and sacrifice in building the company.

Since you will be taking other people effort, blood and sweat, the acquisition will cost you a lot of money. This will be the biggest disadvantage in business acquisition. Due to the emotional attachment to their business, the original owner of the business company often tend to overestimate about their market and business value.

Therefore you must perform proper research and also professional advice to make sure that you spend fair price for the business that you want to take over.

But, before buying the existing company, it is necessary to remain cautious so the business acquisition do not become a waste of money since the acquisition is actually is not an easy alternative to own a business.

Before you start searching for potential business company either to buy to enter new market segment or to expand your old business, it is important to get a good accountant to consult about various aspects of the acquisition you are about to make. A good accountant will have good and in-depth knowledge and information that are useful to help you smooth the acquisition process.

You also need to think about the other side that make the business that you want to take look promising. For example; the company may have loyal client that give good profit to the business. But, those clients might associate their purchase with the goodwill or relationship with the previous owner and they could stop continuing their trade with the company after you purchase the business.

Other thing that you should consider is the reason why the business is put on sale. There are various things that make the company is on the sale list such as the owner has hidden debt or personal problems which will not showed to the company balance. So, you need to perform thorough investigation.

You need to check the business profit projections and trends to make sure that the company will continue its operation and keep making profit after you bought it. Investigate its cost and sales, along with its complete assets. When investigating these things you should accompanied by your accountant, so they can provide advice for you to make the right decision about the purchase.

Unlike starting up a new business which is you have to build on your own according to your own goal and vision, already existing business already involve the live other people in the business, and you must able to make adjustment between the previous goal and vision with yours.

So, even though it is easier to buy already established business company, the company situation after the purchase often not flexible enough since you will be continuing other people goals and visions.

Taking over the already existing business is different compare to buy second hand good such as house or car. It require proper handling and research to avoid over estimated.

Marketing Budget For Your Business

When you own a business, you should make budget planning for marketing. Some people, believe that some businesses do not need to have marketing budget and believe that the business can introduce themselves to potential customers through location or spread from mouth to mouth.

Unfortunately in the competitive business world, this assumption is not right. We often see that business gone bankrupt and went out of business, despite it is located in a good location or it provide great product or service. At first the business seem successful and generate good profits, but after sometimes they are struggling to survive and finally went out of service.

For business people who do not believe in planning the marketing budget must ask themselves why is large company such as Ford and Nike setting up marketing campaign despite they have good products which are acknowledge by many people?

Other than promoting their product, one of the biggest purposes of those big companies doing marketing is to remind their customers about their products and create a topic so customers will keep talking and discussing about their products with other people.

Many small businesses and entrepreneurs would not plan marketing budget due to their overall budget is limited. Therefore, the often assume that they will not afford to set up marketing budget like any large companies.

The truth is to do marketing, they do not have to spend too much with large campaign. To start good marketing, you do not need to spend tens of thousands dollar to hundreds thousands of dollars just like the large companies do.

Your business can start your marketing campaign with couple hundred dollars per month or even less depend on the marketing’s frequency. If you cannot build the plan for marketing budget, you can find professional service that can do it for you that will be adjusted according to your budget along with the budget resource.

The Importance Of Document Processing For Business

From planning to the creation of the company and every step of business operation, they all need documents. Document is needed to any transactions that have been performed. In every organizations, documents are available to provide information so the organization members can manage and control their task.

Without proper documentation, people will be difficult to manage and perform their work because the information about the task is not organized. Although document processing is not the main task of the business operation, documentation is a must thing to do in any business activities to manage all the data.

Retrieving, handling, processing and archiving the document will require a lot of cost and it is quite difficult not to mention annoying work. Document processing also has great influence to the business security and its life, therefore making sure the documents safety is a great task.

Collecting, categorizing, analyzing and archiving for future purposes is the basic tasks in document processing. Document processing will assist the organization member to control the invoices, payment receipt, inventory, sales report, employee management and many more.

Let’s find out on what the influence of document processing to your business organization;

With document processing, you will able to get the necessary information for the decision making easily. Therefore, management can decide things more accurate, effective and efficient to operate the business and take more business opportunities.

When the information can be retrieve easily, it can improve productivity of the business organization. Management will able to receive information quicker if the documents are processed and managed properly, so management can perform their duty more efficiently and make the business company productive.

Improve the client’s satisfaction with proper document processing. When your business company able to retrieve the right data quickly, the management also will able to make the decision quickly, so the company able to answer the client’s demand quickly and make them satisfy faster.

Proper document processing will help your business company to reduce some cost, improve business operation efficiency, and improve the client’s satisfaction. These advantages will help your business company to improve its flexibility and efficiency.

Facing The Risk Of Mergers And Acquisition

Although merger sound promising for any business, there are many cases where the merger does not bring the benefit that was hoped for. It can be either in short terms or long terms. Most of the failure from merger is that this action does not improve the value or company’s shareholder.

But, despite the risk of failure, business mergers still a popular decision especially to expand the business market. This goal is supported with the latest world’s economic development, especially with the globalization, the development of information and digital technology, and the increase of business competition.

There are various reasons why business merger goes from hopeful to sour condition, or even worse bring down the company from the business market. Most common reason that can bring failure to a merger action is because the internal friction among the people inside the organization itself.

Until this day, there are no definite recipes to ensure the success of business mergers. A company will require deep and thorough research before deciding to merger with other company, to increase the chance of success from this business action.

The personal skill is also an important factor to improve the chance of success from business merger. A well trained management will able to implement the right attitude to the new organization structure and to form a solid team to perform business operation properly after the merger and acquisition process.

There are some basic steps to help increase the chance of success from merger and acquisition process such as;

Implementing the integration and synergy process before the merger contract is signed.

Top managers from each company could build a team to make arrangement to overcome the differences among the company such as business operation style, management culture, and company policy and make compromises that bring benefit for each parties and reduce the risk of dissatisfaction and revolt within the company.

The team should consist of individual from each party which possesses good management skill, cross-cultural sensitivity and good adaptation ability to bridge the differences from each party.

Because of the organization restructuring, top management should prepare for employee reduction and if possible make proper remuneration compensation for the employee that need to be laid off after the merger and acquisition process.

Top management is also need to build a response or problem solving team which consist the people from each party to provide quick solution from problems that might arise from the merger and acquisition process, making bonds and bring each party to cooperate with the process.

These steps are only help to increase the chance of success that can help to solve most problems that could appear. Other problems that cannot be solved with these steps might still happen.

It is quite easy to purchase other business company, but to unite that company to the main company and achieving success from the business merger is quite tricky.

There are many companies that are suffered from the unsuccessful merger process. The management needs to make sure that they do not make the same mistakes from the unsuccessful merger by other companies.

After the mergers and acquisitions process, the business scope will become wider. This can build new tension for the management. Because of the problems in adjusting to the new condition, any positive decision could become useless and meaningless.

The market share, profit and the company life are at stake if the management does not make proper action. So, in the end it is up to the chief executive to control and manage the new organization company.

Basic Types Of Business Mergers

Most business person is aware that acquisitions and mergers cannot be classified easily. It is not a simple thing to define and explain about various aspects that become the causes whether the mergers and acquisitions are success or failed.

There two types of basic mergers which are the conglomerate mergers and congeneric mergers. Basically the conglomerate merger is the merger between different types of business or industries, while the congeneric merger is the merger of organizations from the same type of business or industries.

The congeneric mergers can be divided again in to two basic types which are the horizontal and vertical mergers. The horizontal merger is the type of merger where organizations that produce the same type of product or service are merger in to a single company.

Meanwhile the vertical merger is happen when the organizations that produce a product is merger with the organizations that produce the supporting product or providing service that supporting the product such as the merger of ice cream cone company with the ice cream company, or with the delivery company.

The horizontal mergers are often monitored by the antitrust legislation because this type of merger can result in monopoly, where a type of product is produced and controlled by a single company. Therefore, the legislation need monitored the merger to ensure the fairness of the business and to make sure that the company does not monopolize the business.

The main reason for business mergers is usually to increase the company’s profit where the company can reach out more customers and expand their market segment. It is also hoped that the business merger will improve the stock value by combining the company’s stocks value.

The merger’s process often called as synergy to define that the business from each party are blend and operated together. Some of the effects that often happen in the synergy are; eliminating the same function in company which will cause staff reductions, expand the market segment, getting the new technology, improve the production capacity to increase the profit and increase the company visibility.