There are many factors that could bring your business to another milestone, from merely just bigger in team size or revenue to higher profit or even premise. Expansion can be through organic methods or some common ways in the market, which are mergers and acquisitions (M&A). Vertical and horizontal expansion are two of the core ones to also generate high growth results. Let us describe one by one of these major ones, as guidance for discussion on the topic. Many people would think that growing the team size would have meant the company's growth, not necessarily occurring in that case. First of all, not every company would require a team size expansion in order to capture higher sales. Some but not all, the manpower increases could harm the profitability since the net profit might not be on par too to achieve the optimal cost control in terms of fixed or variable overheads. Furthermore, it is healthier if the projection of revenue can be prepared together with the well-planned operating expenditure (OPEX) as well as other mandatory capital expenditures (CAPEX).
Retail and manufacturing are two of the leading examples for production capacity to be enhanced, these are to ensure the current order books or the future contracts can be fulfilled without many obstacles; for instance, the manpower issue here. Even though many people might have claimed the industrial revolution or industrial 4.0 or any other fancy name for technological advancement, we are still falling into the loop of getting things to do it manually through the hands of manpower. Putting aside the white versus blue-collar works overall, retail business or manufacturer’s factories require heavy investment in manpower too even though many positions or roles have been successfully taken over by the technology, such as the payment kiosk (including ordering), stock retrieval, coffee maker to floor cleaning. Service sectors are crucial to make use of humans as the drivers, creating a seamless supply chain that needs them, ranging from sending raw material to the service front line to tidying up the service centre after a day or week. Therefore, training and cultural education to make sure the working team have the same spirit and mindset as all the founding management, aligned with the company's direction are important.
Mergers and acquisitions, are yet a technical-intensive as well as the intuitive type of way to conduct your business expansion. Merging two companies either vertically or horizontally related in your supply chain or acquiring another one which can be within your direct relevance or totally out of your usual competing line. In order to make sure the company that comes into your group is genuine and has a clearer picture to manage afterwards, a series of due diligence must be carried out. Operation and financial audit to due diligence, negotiation toward better terms after the commercial, administration, legal, contract, process, tax due, intellectual property, human resources, information technology and commercial are those examples of due diligence practises that every enterprise shall work on before the final deal has been signed. Getting an advisor, auditor, consultant or any experts who are related and experienced to be on board, so you feel secure when you spend that effort and money to synergize these business strategies to create the growth momentum within your group.
How to Grow Your Company in Malaysia
Contact us today, as we are able to carry out the package as a one-stop center for building, construction, engineering, industrial and related businesses. Any potential mergers and acquisitions, maintenance or upgrading for your building, production or service centre, retail shop, showroom, manufacturing or mill that we can support, design and build, reverse engineering to more. We will provide business, technical, feasible and many more aspects of advice from your current commercial model as a whole after some basic feasibility and due diligence. We can cover your projects in KL Kuala Lumpur, Selangor, Klang Valley, JB Johor Bahru, Penang, Malacca (Melaka), Seremban Negeri Sembilan, Perak, Pahang, Kuantan, Kelantan, Terengganu, Perlis, Alor Setar Kedah, as well as Sabah and Sarawak for East Malaysia; under certain circumstances also, we are able to be your general contractor who design and build for other countries in Southeast Asia (SEA) countries such as Singapore, Myanmar (Burma), Cambodia, Vietnam, Laos, Thailand, Indonesia, Philippines, Brunei, Bangladesh as well as China, Taiwan, Hong Kong, Australia and New Zealand. Enquire today for your project in Malaysia and other regions today at email@example.com or call (WhatsApp) at +(60)11-7001 1003 (Monday to Friday) or +(60)11-1188 1003 (Saturday, Sunday & Public Holiday).
Photo credit: Media from Wix