One common strategy for companies that want to expand is growth by acquisition. Other acquisitions may include acquiring a competitor, expanding a brand globally, or expanding a company’s product line. No matter what type of company a business chooses to acquire, there are advantages and disadvantages to this type of growth strategy.
Successful businesses are always looking for ways to expand and increase their power in the marketplace, and one strategy that will help you get there is vertical integration. When a company is vertically integrated, it controls more than one level of the supply chain, such as owning its upstream suppliers and/or its downstream distributors.
Retained earnings are the income that has stayed in your business from the startup phase to the current reporting period. Thriving businesses have a variety of expenses, such as supplies, equipment, maintenance, repairs, research, labor, insurance, advertising, and taxes. Learning how to manage your retained earnings is an important part of financing and growing your business.
When you are ready to grow and expand your business you should consider growing by duplication. Replicating your current business model in other locations is proven method of growth. However, if you want to avoid the potential pitfalls of expanding, be sure to read MOBI's Top Ten Do's and Don'ts of Growing Your Business by Duplication.
Considering a "cookie-cutter" approach to growing your business? If you have a successful business model in place, growing your business through duplication could be a thoughtful approach to expanding your brand and building revenue.
Thinking about buying a business or franchise? Here are the do's and don'ts about buying a business or franchise.