Growth is the catalyst for every business’s success. Growing your business comes with struggles, but with continuous exacting effort, your vision will pull through. What are the different ways to grow your business, you ask?
A union between two companies help divide responsibilities so that they may share greater success. When done carefully and right, mergers result in businesses being able to buy on a larger scale with higher discounts on purchases. The assets of a merged company make them more attractive to other businesses who are interested in venturing. With their combined market share, the reach of their products and services is magnified, resulting in a more substantial tax benefit. Internationally, coupled businesses stand a stronger chance against other worldwide brands. When mergers go wrong, the downfall of either company drags the other. One of the most successful and surprising mergers of all time is the coupling between two entertainment and film corporations, Disney and Pixar. Together, they shared the success of the movie, Incredibles 2, which raked $1.2 billion worldwide.
You know what they say–if you can’t beat them, join them. If you can buy and own them, that’s even better. In business parlance, you can do this through acquisitions. Acquiring your business competitor allows you to obtain their market share in one deal. Deals like this are costly, but it can be a convenient way of expanding your business’ reach. The downside to this is taking over the debt load of your then competitor, which may affect venues that you’d like to take on in the future.
Nevertheless, acquisitions that go well are the likes of Facebook’s move on WhatsApp. This US$19 billion deal is one of the most significant acquisitions to date. Acquiring a business in the same niche is not uncommon. In fact, Michael Kors acquired JimmyChoo for US$1.2 billion in 2017.
If a company is not interested in merging with or acquiring other businesses, it can look into branching out abroad. As of 2019, Forbes enlisted the United Kingdom, Sweden, and Hongkong as the top three best countries for businesses. Though this list cannot generalize to all companies, these are great places to start with. Apart from the U.K., Malta is another reliable country to do business in. As an entrepreneur, maximizing your local expansion is often not enough. After much growth, you will eventually need hassle-free travelling, which you can usually obtain through secondary citizenship.
Malta, for one, offers secondary citizenship to individuals who can invest through government bonds or real estate, such as Frank Salt Real Estate. Exploring options like this has many benefits for your business. Coca Cola, the carbonated soft drink company, has branched out from the United States to all but two countries in the world. Its success is indeed unparalleled but can be replicated.
Most of the time, being an entrepreneur means seeing opportunities that are invisible to others. It takes a lot to steer that wheels of your company. In the end, the sacrifices you made and calculated risks you took are your legacy.