{"id":1223,"date":"2018-08-20T21:17:18","date_gmt":"2018-08-20T21:17:18","guid":{"rendered":"http:\/\/www.realworldconsulting.kiwi\/rwc\/?p=1223"},"modified":"2018-08-20T21:31:24","modified_gmt":"2018-08-20T21:31:24","slug":"some-entity-alignment-opportunities-the-business-community-might-like-to-consider","status":"publish","type":"post","link":"https:\/\/www.realworldconsulting.kiwi\/rwc\/rwc-blog\/some-entity-alignment-opportunities-the-business-community-might-like-to-consider\/","title":{"rendered":"Some Entity Alignment Opportunities the Business Community Might Like to Consider"},"content":{"rendered":"<p><span style=\"font-size: 14pt;\">Over the past few days I&#8217;ve been purposely invigorating discussion on the topic of building commercial critical mass by Small Medium Enterprises (SME&#8217;s) transitioning their mindset from &#8220;we have to go it alone&#8221;, to &#8220;I think it would be worthwhile talking with like-minded business owners to see what their appetite might be to combine forces&#8221;.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">For those who haven&#8217;t read these earlier blogs, here they are:<\/span><\/p>\n<p><a href=\"http:\/\/www.realworldconsulting.kiwi\/rwc\/rwc-blog\/i-want-to-increase-my-scale-of-operation-but-i-dont-want-to-merge-with-another-company-what-other-options-are-there\/\">Blog # 1<\/a><\/p>\n<p><a href=\"http:\/\/www.realworldconsulting.kiwi\/rwc\/rwc-blog\/the-likelihood-of-your-business-achieving-growth-will-increase-with-increased-scale-of-operation\/\">Blog # 2<\/a><\/p>\n<p><a href=\"http:\/\/www.realworldconsulting.kiwi\/rwc\/rwc-blog\/to-scale-up-your-business-operation-look-outside-new-zealand-if-necessary-for-commercial-alliances\/\">Blog # 3<\/a><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 14pt;\">A &#8220;<span style=\"color: #ff0000;\"><strong>parent company<\/strong><\/span>&#8221; structure is one such &#8220;composite company structure&#8221; that I&#8217;m advocating that SME&#8217;s look at very closely, for it enables multiple businesses to join together under a single brand. In the process, scale of operation increases, so too does:<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">Access to greater HR expertise &#8211; more specialist HR capacity.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">The opportunity to plug &#8220;weakness holes&#8221; in the business &#8211; with different strengths coming together.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">The potential to develop better\/ more &#8220;on edge&#8221; intellectual property.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">The affordability of new state-of-the-art technology and\/ or equipment.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">The seamless way in which a client engages with &#8220;the&#8221; parent company &#8211; as opposed to multiple separate business units.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">The opportunity to reduce certain operational costs (e.g. admin).<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 14pt;\">I suggest that a parent company structure could be readily formed between these clusters of businesses:<\/span><\/p>\n<p><span style=\"font-size: 14pt;\"><strong>Parent Company # 1 &#8211;\u00a0<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">Architect agency<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Building firm<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Flooring business<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Windows business<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 14pt;\"><strong>Parent Company # 2 &#8211;<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">Building firm<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Electrical company<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Roofing company<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 14pt;\"><strong>Parent Company # 3 &#8211;\u00a0<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">Retail jewellery company<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Manufacturing jewellery company<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Precious gems mining company<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 14pt;\"><strong>Parent Company # 4 &#8211;<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">Flooring company<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Interior Design company<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Furniture retailer<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Painting company<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Paint supplier company<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 14pt;\"><strong>Parent Company # 5 &#8211;<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">Farm supplies retailer<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Farm supplies product development company\u00a0<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Shearing company<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Fencing company<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Phosphate distribution company<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 14pt;\"><strong>Parent Company # 6 &#8211;<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">Marketing agency<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Website design company<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Copy writer company<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">SEO specialist company<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">IT hosting\/ support\/ development company<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 14pt;\"><strong>Parent Company # 7 &#8211;<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">Horticulture supplies company<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Horticulture infrastructure installation company (e.g. posts\/ wire configurations used for growing apples)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 14pt;\"><strong>Parent Company # 8 &#8211;<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">A range of different consultants, each who offers a particular field of specialisation<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 14pt;\">The key is simply to determine (conclude) that a sufficient number of synergies are evident between all of the parties that are under consideration, before pressing the &#8220;go button&#8221;.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">When we consolidate, we build &#8220;critical mass&#8221;. It is critical mass (scale) that delivers scale-related advantages; and it is these particular advantages that generally represent the most significant advantages that a business could hope to realise. Most importantly scale-related advantages often reflect material financial benefits (e.g. price discounts, volume-based discounts, Long-term Incentives (LTI&#8217;s) to encourage the attainment of volume goals, etc) and special trading terms forged with preferred suppliers (e.g. exclusivity in relation to particular product lines, first opportunity to trade with newly-released products, etc).<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">Knowing that growth development aspirations are commonplace throughout most businesses, I suggest that you (as an SME business owner) make the decision to hold conversations around using composite commercial structures to achieve significant growth with those people who you consider would be open to such a conversation&#8230;starting today. I think you&#8217;ll be surprised to learn the size of appetite for this conversation that exists&#8230;it just needs one person to start the dialogue.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Over the past few days I&#8217;ve been purposely invigorating discussion on the topic of building commercial critical mass by Small Medium Enterprises (SME&#8217;s) transitioning their mindset from &#8220;we have to go it alone&#8221;, to &#8220;I think it would be worthwhile talking with like-minded business owners to see what their appetite might be to combine forces&#8221;. For those who haven&#8217;t read these earlier blogs, here they are: Blog # 1 Blog # 2 Blog # 3 &nbsp; A &#8220;parent company&#8221; structure&hellip;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/www.realworldconsulting.kiwi\/rwc\/wp-json\/wp\/v2\/posts\/1223"}],"collection":[{"href":"https:\/\/www.realworldconsulting.kiwi\/rwc\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.realworldconsulting.kiwi\/rwc\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.realworldconsulting.kiwi\/rwc\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.realworldconsulting.kiwi\/rwc\/wp-json\/wp\/v2\/comments?post=1223"}],"version-history":[{"count":2,"href":"https:\/\/www.realworldconsulting.kiwi\/rwc\/wp-json\/wp\/v2\/posts\/1223\/revisions"}],"predecessor-version":[{"id":1225,"href":"https:\/\/www.realworldconsulting.kiwi\/rwc\/wp-json\/wp\/v2\/posts\/1223\/revisions\/1225"}],"wp:attachment":[{"href":"https:\/\/www.realworldconsulting.kiwi\/rwc\/wp-json\/wp\/v2\/media?parent=1223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.realworldconsulting.kiwi\/rwc\/wp-json\/wp\/v2\/categories?post=1223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.realworldconsulting.kiwi\/rwc\/wp-json\/wp\/v2\/tags?post=1223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}