Purchasing a Business

There are basically two ways to grow a business:  from the inside, or from the outside.  The majority of small businesses typically choose to expand from within, looking at things like product or service diversity, additional locations, additional channels, other markets, etc.  But a few consider growing through the purchase of another business.  Our ISBDC recently had the opportunity to help two of our clients, one a seller and another the buyer, in just such a deal.  

Last March, we were approached by Nancy Higdon, one of the owners of Higdon & Associates Marketing of Sycamore, IL.  Nancy and her husband Robert grew their publishing business for the past ten years and were now looking to retire.

In considering likely candidates to introduce  to the Higdons, we looked not only at potential prospects for their desire to grow their existing business and their financial ability to manage the purchase, but also the skill set required to run the new business and the personality traits that would be key to being successful in that business.

Our ISBDC introduced Sheryl Theisen, the owner of of hYperstrand Marketing, to Nancy Higdon.  Happily for both parties reached agreement.  The purchase and turnover of the business was just concluded at the beginning of September.

Sheryl started her hYperstrand Marketing business in January 2009, with the goal of helping other small business owners in the greater Elgin area create and implement effective marketing plans.  To be effective, says Theisen, a marketing strategy must incorporate efforts from three areas simultaneously:   

Branding – cohesive marketing materials, complete with logos, images, and taglines that clearly represent the business. 

Communications  - purposeful and impactful websites, social media campaigns, blogging, and videos.

Message Delivery – well-crafted content for websites, newsletters, eBlasts, advertisements and articles.

Now, with the new publishing division, Theisen will be able to produce high-quality collateral for client events, promotions and associations.  Her target audience will include homeowner associations, clubs, non-profits and small businesses.

Year over year, Theisen has been able to grow her business, despite the down economy.  Now, 3½ years later, she has a very solid reputation in the community and very strong client recommendations.  The ISBDC has worked with Sheryl throughout this period, helping her focus the business, develop a meaningful financial perspective, and now expand the business.  However this did not happen without a lot of hard work and personal investment on Sheryl’s part.  Success comes with dedication and determination. 

(For anyone interested in understanding ways to grow a business, please read 10 Ways to Grow Your Business, published by entrepreneur.com.)