When to seek professional advice

Discussion in 'Growing and Managing a Business' started by Sonofagun, Jun 19, 2018.

  1. Sonofagun

    Sonofagun
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    Hello, I'm new here so forgive me if i jumped in the middle of something. We have been making more profit than in past years. Commercial hospitality renovation company, ran by my husband and course me m, the wife, bookkeeper, etc. I dont know what do with profit. Invest? What to purchase, when, etc? What kind of professional am I to seek out for consulting on how to make our business grow, investing, investing in our own company, such as benefits etc. Any suggestions or guidance would be appreciated
     
  2. fisicx

    fisicx
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    You could donate the profits to charity to help those less well off than you.
     
  3. Joseph.Shivell

    Joseph.Shivell
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    What you're looking for is a business consultant - that's what a "professional (you) seek out for consulting" is called. S/he will probably ask where you want this business to go. Do you want to expand your current location? Do you want to add other locations? What are your goals? S/he will then be able to tell you how best use your profits to achieve those goals.
    This is one possibility, which could help build your reputation in your community.
     
  4. Tuah Bao

    Tuah Bao
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    Assuming your existing company is Co. B Ltd.

    Horizontal Diversification
    Invest into new product/service lines that serve similar customers or opening new companies in other locations. The idea is to achieve economic of scale, so that you have a stronger purchasing power and bring down overall cost.

    Vertical Diversification
    Be your own supplier. Setup a company, Co. A Ltd which will supply raw materials to Co. B Ltd. Co. A Ltd will get stable orders from Co. B Ltd, therefore it is considered secured and safe. Of course, Co. A Ltd will need to look for new customers to expand its business.

    Similarly, you can be your own customer. Setup a company, Co. C Ltd which will handle logistic (which you may be currently outsourcing it). Again, Co C Ltd will receive stable orders from Co. B Ltd and it has to get its customers to expand the business.

    The idea is that your profit/cash will continue to circulate within the group of companies instead of 'flowing out'.

    You may consider hiring CEOs/GMs to run the new businesses with KPIs, of course.
     

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