Other Alternatives To Selling Your Business

Should I sell my company? If you’ve run into the glass ceiling that some sectors seem to bring with them, it might feel like it is time to sell. However, there are a couple of different options that many business owners doesn’t think of until they have signed on the dotted line.

Expansion

It seems ludicrous to suggest that you could expand whenever you’re facing problems with revenue. However, you might be able to reduce your costs by a vertical expansion rather than a horizontal one. Taking in more of the supply chain might enable you to reduce your product costs, allowing you to either make more profit per unit or to reduce your output costs and therefore undercut your competitors. For example, if your business is growing strawberries and other fruit, you might consider creating at least part of your own compost as fertilizer instead of purchasing all synthetic fertilizer from an additional source.

Outsourcing

Outsourcing does not only refer to sending your labor to India. It can also many employee pooling or contracting for services like human resources. It is no secret that maintaining a human resources department is expensive. If you made the mistake of hiring the wrong individual for your human resource personnel, you will find that a single wrong choice can haunt you for decades in terms of poor employee performance and retention. Instead, hiring a firm to handle your staffing and training needs can be the more economical and more successful option. For basic, non-industry specific needs like paperwork, contracting labor can be an excellent way to get just the amount of help you need instead of hiring personnel to fill this position full time.

Mergers

Maybe your business has gone as far as it can go by itself. In this case, a different name or producing a wider number of products can be just the jolt your business needs to take off. A merger or acquisition is only the right decision if you see yourself staying in the same sector for a large amount of time and can demonstrate the benefits your company can bring to a merger or acquisition. After all, no other successful business wants to be dragged down by a company with less than stellar revenue and earnings reports. However, if your financials are solid and you are just looking for a step up, a merger can be a great way to capitalize on the work you have put into your business.