Mergers & Acquisitions Advisory

A Neumann & Associates, LLC

June 19, 2018

How to Seek Company Growth And Keep Costs Low

By Achim Neumann

Build, move, improve, the three golden rules when it comes to growing your business, but is it possible to seek this growth and still manage to keep costs down? The straight answer is yes, it most certainly is possible, but you are going to need a smart plan in order to achieve this feat. The benefits of growth and balancing your costs are remarkable and could very easily be the difference between your business surviving in the industry, and thriving by eating up the market share.

The first thing to point out here is that your costs will rise somewhat, and there is no magic pill which can be taken to prevent that if you want growth, however, there are some ways that you can keep costs down.

Outsourcing

Hiring more staff is going to be costly, not only in terms of employee contracts, bonuses, vacation time and sick days, but also because it will create the need for more infrastructure such as office space in which to house your team. Should you decide to grow your operation, the best course of action, at least in the first year, is to look to outsource many aspects of the business. We live in a world with more freelancers and individual specialists than ever before so make use of these services, doing so means you can count on lower costs overall, and a far better ROI.

Fine Tooth-comb

New premises, outsourcing, bigger marketing investment and higher rates of production, these are all aspects of growth where being cost effective only goes so far. In order to keep costs down during your growth period then, you need to be looking at a far lower level. Stationary, office supplies, computers and any other work tools should all be reviewed in terms of how much they cost the business and how you and your team can seek to minimize spending on such items. These small components of the business really add up and in reducing your spending on items like this, you can cover some of the additional investment which you’ll be making in non-negotiable areas of the business.

Planning

The biggest key to your success in both growth and balancing the books, will be in how much you are willing to invest in the planning stage. The more time that you can give to planning your growth, the smarter you will be able to do it. Occasionally, a business must grow before it is ready, in order to meet demand, if you are not in a situation like this then you should be looking to invest at least 6 months into meticulously preparing how each aspect of the business will cope with growth, where the extra investment will be needed, and which branches of the company can be trimmed. Plan well and you can ensure to keep costs as low as possible during your period of growth.

Minimizing spending can be tough at the best of times, let alone when you are trying to push for growth of your business, with this being said, it can most certainly done with the right approach.

About A Neumann & Associates, LLC

A Neumann & Associates, LLC is a professional mergers & acquisitions and business brokerage firm having assisted business owners and buyers in the business valuation and business transfer process through its affiliations for the past 30 years. With an A+ Better Business Bureau rating, the company has senior trusted professionals with a deep knowledge based in multiple field offices along the East Coast and has performed hundreds of business valuations in its history. The firm’s competitive transaction fees are based on successfully completing transactions. For more information, please contact A Neumann & Associates at 732-872-6777 or info@neumannassociates.com

Comments are closed.

Any questions? Please contact us at 732-872-6777
Call Now

Client Testimonials

“Working with Marc and his company was a pleasure. What I thought was going to be a just another one of those pushy sales companies was just the opposite. Polite, knowledgeable, and a pleasure to talk to and deal with. Marc handled most of the interaction and he has one of the greatest demeanors. Again, it was a pleasure working with him and his firm.”

Douglas DiCeglio

“I recently completed an acquisition using A Neumann & Associates. Tony Valentino was very helpful and accessible during the entire process. They do a thorough job vetting both parties and got us to the finish line.”

Srini Mudambi

“Claus out of Florida helped us with the sale of our business. We had never done anything like this and him and his team walked us through the process from start to finish. We had some challenges through the process and Claus continued to show up even in the difficult conversations.”

Colby Harris, Co-Owner, Del Mar Designs

“Claus Madsen thoroughly helped us with selling our company. From the 1st introductory meeting explaining to us what was possible, to providing us with resources to assist with the sale. Claus was invaluable throughout the whole sales process. Claus was with us every step of the journey and always made himself available for any questions or issues that came up along the way. If you are interested in selling your business, I encourage you to reach out to Claus and the ANA team so that they can let you know what’s achievable. These guys will make it happen!”

Ron Harris, Co-Owner and Vice President, Del Mar Designs

“A Neumann & Associates is the only business broker I would use or consult with. They have assisted with 3 business sales over the past 15 years with me. They are honest and sincere and have always performed better than my expectations. They are the only one i would use for the sales of my businesses.”

James Belanger, Business Owner

“I wanted to take a second to commend the exemplary customer service from both you [Karin Neumann] and Mr. Valentino. It’s both a rarity in the industry, and very much appreciated.”

Andrew G., Investor

“We worked with Neumann & Associates to investigate the purchase of a research company in 2010 and found Achim to be capable, forthright and realistic. His depth of experience enabled us to fully understand our options, offering creative options that might enable the acquisition. While we didn’t acquire that particular company at that time, we know exactly who to call whenever we’re looking to buy or sell a business.”

Daniel Coates, Buyer

“Purchasing a business through this firm was a pleasure. Gary was very professional and transparent throughout the entire process. I look forward to working with A Neumann & Associates in the future.”

William Klemens, Buyer

“I utilized A. Neumann & Associates to assist in an M&A process. They are VERY thorough in using their time-tested process to calculate the value of investment opportunities, a process which provided a very detailed explanation for the value of the potential opportunity. Additionally, they also went above and beyond to extend other services including connecting with others who specialize in your industry and can assist with necessary steps including legal and accounting. Highly recommended!”

Edward Lane , Business Owner

“I recently contacted A. Neumann and Associates about getting a valuation of my business done. I spoke with Achim, who explained the process in detail. He had his colleague Gary come to my office in order to get a clear understanding of my business, and what I was hoping to accomplish. His patience in answering all my questions and his knowledge of the proper way to market my business gave me great confidence that this is the firm I will be using when the time comes for me to sell my business for max value. They gave me great insight into the steps I need to take now to get the best deal in the future. I highly recommend this firm to anybody who wants to sell now or down the road. They not only know their stuff, their actually just real nice guys.”

Robert Kardane, Business Owner
view all testimonials

Contact A Neumann & Associates, LLC

If you are considering selling your business, please contact us to learn more about our comprehensive service spectrum. Our experienced professionals will answer all your questions about selling a privately held business in complete confidentiality. Please fill out our contact form, or call us at 732-872-6777. We will contact you directly and will never identify ourselves to your employees.

call us now
Contact Us for a Free, Confidential Consultation

Experienced M&A Advisors available

Full Name
Email Address
Phone Number
Message