Traditional entrepreneurial formulas go something like this… “If we have 10 clients, we hire 1 marketing person, adjust their salary according to client growth, and then in 4 to 5 years we could possibly see 10% business growth.”
We have news for you! A merger and acquisition process will grow your business 30% to 100% OVERNIGHT!
When you merge with another business, you are effectively doubling your business in size. That growth equals greater sustainability and greater scalability. You may think that a larger business would be more to handle, but just think about the growth process in general:
- When your business expands in size, you have the opportunity to expand your client base.
- The more clients your business has, the more revenue it generates.
- With a boost in revenue, you are able to hire the appropriate staff to handle the rise in clientele.
- With the right staff in place, your revenue and your clientele are going to continue increasing significantly.
It’s easy to get stingy about bringing more team members on board. After all, when you experience financial growth, your first reaction is to keep it growing, and hiring staff seems to do the opposite of that. Initially, you may experience a financial dip when you hire your new sales team. However, if their human capital matches your business values, you are undoubtedly going to experience financial growth in the following years.
Remember: When you grow externally, you must grow internally to achieve even more external growth!
Basically, if your clientele grows, your internal team must grow. That does mean a higher payroll, but it also means a higher ROI. You might be looking to hire a sales manager that demands a hefty salary. To ensure a good return, thoroughly analyze what this person brings to the table. Let your decision to hire involve looking back to their work history, but also looking forward to your company’s future. Always look forward! If you don’t see this person contributing to your future growth, look for someone else to fill the position.
If you are expecting rapid growth from your M&A transaction, expect to make the occasional investment. Hiring a team of experts is definitely an investment worth making. The more growth you experience, the more responsibility you gain. When you have an efficient internal team, those responsibilities are not only fulfilled, but they help you grow your bottom line a whole lot quicker.
Interested in learning more about M&A, contact us for your no-cost consultation.