Posted by – June 20, 2011
Coming up with the fund for a start-up can be very difficult. Even if you do get funding you might still find that your budget is strained. If that is the case, consider sharing business costs with other small businesses. Aspects of a business that can be shared with another company include:
- Office space. If you’re looking to rent an office space, contact a broker. Ask if they know of any offices that are available to share. Sharing an office is much more cost-effective than renting your own. On that same note, if you currently rent an office but have extra space inform brokers that you are interested in subletting.
- Office supplies and equipment. If there are multiple offices working in one space, it is a good idea to invest in some good office equipment. Get a high-quality community photocopier instead of several, cheaper personal photocopiers. It is also smart to buy bulk office supplies together at a reduced rate.
- Share support staff. One office building doesn’t need four different secretaries or accountants. Share support staff and save money on salaries.
- Printing costs. Form a consortium with other small businesses and approach a printing supplier. With the large amount of business they are recieving, they are likely to offer their printing services at a reduced rate.
To determine if sharing business costs is right for your company, contact the Winflow Financial Group.
Mergers and acquisitions are when two small companies come together to form a large company. A merger is usually done to create a value greater than the two companies alone could produce. Companies that are struggling also participate in mergers or acquisitions to keep their businesses from going under. Some different types of mergers and acquisitions include:
- Conglomerates. Conglomerates are when two companies that share no common business areas merge.
- Horizontal mergers. This is when to companies that are in direct competition with each other merge to share markets and product lines.
- Vertical mergers. Vertical mergers are when two companies with slightly different but related product lines and markets merge.
- Reverse mergers. This type of acquisition is for private companies who wish to be publicly listed. A private company must buy a publicly-listed shell company to become a new public corporation.
Reasons for Merging
Some factors that may motivate a company to merge include:
- Economies of scale. The larger your company is, the more cost effective it will be to purchase supplies. Merging can also mean more purchasing power and the ability to negotiate prices.
- Improved market reach. Combining the resources of two companies can mean new markets and sales.
- Staff reduction. When two companies merge there will be a surplus of staff in many departments. Mergers often mean job losses for employees.
- To acquire new technology. Buying small companies with unique technology will allow larger companies to stay competitive.
To learn more about mergers and acquisitions, read this informative guide.
For all your small business needs contact the Winflow Financial Group at 1.800.956.6897.
It is a very wise move to hire a business attorney if you currently own and operate a small business. Hiring a lawyer will help you avoid legal mistakes that could end up costing you. Choosing the right lawyer for your small business is the difficult part. Not only do have to think about what traits you want your ideal lawyer to have but you also have to think about which type of lawyer to hire. Some different types of business lawyers include:
- A general business lawyer. Depending on your business needs, hiring a general business lawyer can be more cost effective than hiring someone who has specialized in a certain aspect of business law. These types of lawyers can assist with business structure, contract review and help you avoid legal trouble.
- A specialized business lawyer. Examples of specialized business law include incorporation and merger laws. If your company has very specific needs, hiring these types of lawyers may save you money.
- A small law firm. These firms are more customer-based and are quite effective in handling general company needs.
- A large law firm. Larger firms are more likely to have specialized business lawyers which can be important to a company when it starts to grow.
If you need help determining what type of representation is right for you, contact the Winflow Financial Group. We can be reached by phone at 1.800.956.6897 or through email at email@example.com