WHY MERGING BUSINESSES IS THE ONLY HEALTHY SOLUTION FOR YOU.
If you have been contemplating on merging businesses for some time, then this is the best place to be. The core goal of being in a business is to make profits. It’s therefore worthwhile to grab any opportunity which leads to increase in sales and the subsequent making of abnormal profits. Merging of businesses can be the onset of enormous growth of your company or its fall in equal measure, depending on the steps taken before, during or after merging the businesses. Below are great tried and tested tips to consider before merging businesses in today’s economy, their effects and the don’ts which should be avoided as well.
Below are 4 critical goals you need to ask yourself before merging two or more business together.
Will merging the businesses work out as you expected and will that take the company to the position you wanted? It’s always advisable for the management to call for a meeting, share a cup of black coffee and sign management agreements that will propel the company forward. Also, lay out the best management structure encompassing ideas from the merging businesses
b. Expectations and goals.
Before merging two companies together, it’s good to run these great ideas in your mind. Will the merging fulfill your goals and expectations you had before setting up the company? If so, then go ahead with the plan but if the expectations and goals don’t rhyme, then review the laid down structure and the anticipated goals.
c. Presence of existing mergers
If you want to merge businesses, do good research to know if the business in consideration is already a merger. This will help you to understand the expectations of the individual business so as to incorporate it into the merger’s goals. Remember, merging with a single business and merging with a group of businesses is far much different. This helps to have a still management that sees and governs it while still upholding the individual business objectives.
Businesses tend to have different office cultures. When merging the businesses, it is always advisable to prepare the employees for the new culture they expect as a result of amalgamation.If this is not dealt with at an early stage, it may result in unnecessary competition among the employees. This coupled with uneasiness on the employees will result in deterioration in sales and profits thereof.
Having employed the above-aforementioned strategies, below are the three major benefits you will be able to achieve:
1.CENTRALISED BUSINESS OPERATIONS.
With all businesses under one roof, it becomes effortless to centralize the operations since all activities are undertaken from a central point. This helps in:
a} Cutting unnecessary costs
b} Ease management
c} Skyrocketing profits
d} Minimizing office space
2. PRODUCT MANAGEMENT STRATEGIES.
In cases where the businesses trade similar products, It becomes easy to manage the products. How is this possible? As the effect of merging, different personnel from the merging businesses pull together ideas on how to propel the products on trade to the customer. As a rule of thumb, having employed that renders your products more competitive in the market.
3.REDUCED MARKET COMPETITION.
Merging businesses kicks away competition since the management is made up of minds who were formally competing. Having come together, they cultivate each individual ideas thus reducing competition.
In conclusion, when you apply the above methods, you will see your business propel to greater heights.However, there three deadly sins which should not be applied during amalgamation process. check them below;
sin1. Friendship oriented business
When it comes to business, let it business. Mean business. What do I mean? Let the merging be sparked by the willingness to undertake business and not friendship. Friendship -oriented business is a slowly dying business.
Sin 2. Resisting change
Some bosses resist change for fear of losing their status or position. This happens when businesses merge since the positions become limited as well. Change is inevitable but suppose it comes with the demotion of your job position?
Sin 3. Fear of loss of employees
Mergers always come with a loss of employees. This is because the business becomes one entity and therefore job positions diminish as well. If you happen to fear to lose some of your employees as a result of merging, you should rethink your core goal in business. If it is profit making then retrenching your employees should not be a hard task to perform.