your password has been reset successfully, Please login again.

Procuring Small Business Can Promise Success Too

Success is not only relatable to startups; it can be achieved by acquisition of failed ventures also.
BY Jaspreet Kaur
Feature Writer, BusinessEx
Feb 08,2019

The prominence of startups in the ecosystem has precipitated a misconception. It is vastly reckoned that success can be achieved through a disruptive business idea only. This approach is partially wrong as the success is not merely contingent on a disruptive business idea but on other co-relating strands as well. Nonetheless, the significance of disruptive ideas cant be underestimated.

Learn A Lesson From Oracle Of Omaha'

Warren Buffett, who is a renowned American business dignitary, has a profound self-theory of investment. He invariably emphasises on buying stocks of a solid company who is performing moderately in the market. He reckons that the investment should not be made by solely assessing the current position of the company. Other than current performance, the investor should assess the trajectory of the organization as well.

The educative advice of Warren Buffett is, If we're (Buffett and Charlie Munger) right about a business, if we think a business is attractive, it would be very foolish for us to not take action on that because we thought something about what the market was going to do or anything of that sort....Because we just don't know. And to give up something that you do know and that is profitable for something that you don't know and won't know because of that, it just doesn't make any sense to us, and it doesn't really make any difference to us. said in an annual meeting.

The realistic experience of Buffett demystifies that integration holds more power than creation. Creating a new company requires twofold hard work and monetary expenses whilst acquiring the existing business needs minimal manual labour and fiscal support.

Attaining Success From Acquired Business Enterprises

Success is an ordinary aspiration of every entrepreneur. Nevertheless, it is not relatable to startups only; it can be achieved by the acquisition of failed ventures also. Even, Colonel Harland Sanders, founder of KFC, attained success following numerous business failures. In fact, KFC was not the first business of Sanders; he ran various small businesses and further, performed small jobs for a living. However, no endeavours helped him realize his ambitions as good as KFC did. Sanders culinary skills helped him establish KFC and after attaining a huge success in terms of revenue, he sold off the business to a group of investors.

The sale turned profitable for Sanders as the new investors increased KFC outlets to 6000 and then gained $2 billion yearly. So, Colonel Harland Sanderss story is exemplary that the acquired business can also promise success to the investors.

Taking over a small business demands evaluation, research and in-grown interest. Trusting on a broker is not good as mediators invariably represent a good image of small business for sale. For gauging the existing business, you need to adhere to certain parameters, in turn, help you ascertain inner picture of the small business.

  1. Research Well

If a business is available in cheap rates then acquiring the business is recommendable. The investment should not be subjugated on attractive rates but on the hidden potential in the business. Assessing the performance of the small business, reasons for the business failure and importantly, recognizing endeavours cruxes is imperative.

The evaluation can be possible by knowing the nitty-gritty of the industry, the small business belongs to. Further, conversations with leading industrialists of the particular sector help to gain implicit knowledge about its ecosystem.

  1. Ascertain A Good Match

After grasping the knowledge about the sector, its time to find a good match in accord with your needs. A good match will be something that builds your interest, keep you engaged and has a component to thrust you high in the industry.

While planning to take over the company of your choice, involve accountants and advisers so that the business valuation can be accurate.

  1. Perform A Double Check

Once you have made a decision of acquiring the business, it is imperative to contemplate a bit more. For that, become reliant on outsiders and enquire financial soundness in the business model. Auditors, the Income-tax department and judiciary are a few mediums to cross-check the background of the company.

Follow these suggestions while ascertaining as well as acquiring existing businesses.

Please add your Comment
SIMILAR Articles
April 18, 2019
Apart from creating quality products, the health care companies should also advertise positive attri ...More
By Jaspreet Kaur
April 18, 2019
It is imperative to keep them updated with know-how and additional knowledge of the sector. ...More
By Jaspreet Kaur
April 17, 2019
With the progressing time, many people, essentially entrepreneurs, have adopted the idea of blogging ...More
By Jaspreet Kaur
April 17, 2019
In auto dealers’ business, a sales appointment is a vital strand as it predicts the future of a part ...More
By Jaspreet Kaur
April 16, 2019
The companies should relentlessly rely on digital marketing strategies and improve the overall marke ...More
By Jaspreet Kaur
April 11, 2019
The business owners should swot (study the market deeply) and form effective strategies with respect ...More
By Jaspreet Kaur
April 10, 2019
The newly formed tech health equipment can resolve deep-rooted problems and, in turn, help startups ...More
By Jaspreet Kaur
April 10, 2019
If a digital healthcare startup plans on doing something big then it should bring experienced empl ...More
By Jaspreet Kaur
April 09, 2019
Since the car modifying trend is on the rise, there are also some car accessories which don’t embell ...More
By Jaspreet Kaur
April 09, 2019
The auto accessories' business is a lucrative business like other automobile businesses and similarl ...More
By Jaspreet Kaur
April 08, 2019
To ease the bumpy ride, the entrepreneur should follow important business guidelines which enable to ...More
By Jaspreet Kaur
April 08, 2019
For establishing a beauty salon business, the salon owner should work on marketing strategies, frami ...More
By Jaspreet Kaur