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    How to manage customer and supplier risk when buying a business

    Posted by James Price | JPAbusiness on 16-May-2018 02:00:00

    Last month I wrote a blog about how to avoid losing key staff when buying a business.

    In this blog I'm sharing advice on how to manage another critical risk when buying a business: customers and suppliers.

    This risk relates to key customers and/or suppliers taking flight from the business you’ve purchased in the early stage of the transfer.

    In doing your due diligence it’s very wise to look at both supplier and customer concentration risk.

    Continue reading...

    Topics: Buying a business, Customers, Due diligence, Suppliers, business advice, risk management

    How to ensure your suppliers add value to your business

    Posted by James Price | JPAbusiness on 14-Mar-2018 02:00:00

    Suppliers are key value drivers in a business.

    Suppliers make up a large part of the cost of doing business, but more importantly they assist in providing consistency of whatever product or service you deliver.

    The degree to which you’ve got that continuity locked down will allow you to drive more value in your business.

    If you’re servicing a customer and you know you can be predictable and deliver at a certain time, then you’re much better at pitching to that customer against a competitor.

    Continue reading...

    Topics: Business Value, Suppliers, business advice, business management

    Business transfer issues: Customers, Suppliers and Stock [blog]

    Posted by James Price | JPAbusiness on 21-Oct-2016 03:03:00

    From the JPAbusiness Strategic Business Insights blog archives

    In this blog we examine the next three categories in the JPAbusiness Business Transfer ChecklistCustomers, Suppliers and Stock.

    Customers

    In our previous blog we talked about the financial issues related to customers, but there is a separate issue regarding customers and that is ‘relationships’.

    A business may have 50 regular and loyal customers and yet 15 of those may represent 60% of the sales on a regular basis.

    Continue reading...

    Topics: Customers, Business transfer, Inventory, Suppliers

    How to manage the 3 risks of a business purchase [blog]

    Posted by James Price | JPAbusiness on 04-Aug-2016 04:30:00

     

    There is no reward without risk...

    Risk and return are two sides of the same coin and most people looking to purchase a business, if it’s not simply to replace full-time employment, should be targeting a return of between 20% and 50% on their investment over time, depending on the business and other factors.In our experience, the risks associated with business purchases fall into three categories:

    1. People
    2. Customers, Suppliers and Market Dynamics
    3. The Value Exchange
    Continue reading...

    Topics: Business Value, Buying a business, Advice, Customers, Staff, BME, Starting a business, Suppliers

    6 business lessons from my day in court [blog]

    Posted by James Price | JPAbusiness on 01-Aug-2016 05:30:00

    I recently spent the day in a local courthouse as a witness in a civil court contractual dispute between one of my clients and a service provider

    Turns out my client won the case, but I don’t think any of us enjoyed the experience. Going to court can be a costly and sobering exercise. The biggest revelation came at the outset of the day when the judge used his opening remarks to assure both sides that one of us would lose, and urged us to go away and try to reach a settlement rather than continue the proceedings.

    Continue reading...

    Topics: Advice, Legal, contracts, Suppliers

     
    Disclaimer: The information contained in this blog is general in nature and should not be taken as personal, professional advice. Readers should make their own inquiries and obtain independent, professional advice before making any decisions, taking any action or relying on any information in this blog. 
     
     

     

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