Share Your Company to Gain Market Share
Oh boy. There’s that word “market share”. When you own a small business that is growing, you are always looking at or thinking about it, and as a small business owner, you know that no matter how much you capture, there is always going to be another level. If you have the biggest share in the city, you look to the state. State? Look at the region. Region? What about the country? And so on…
As you grow, the real challenge is how you can grow into new markets and increase your market share in those markets. For many small businesses, there is a limit to how big they can physically get. A real estate broker, for example, cannot plan to physically show a property in New York in the morning and Florida at lunch.
But he could if he had a team.
And therein lies the rub. Small businesses need capital to grow market share, and as a result of their current market share, they usually cannot afford to raise capital. Kind of a catch-22.
But fear not, friends, because like the character Yoda said in Star Wars – “there is another”…
Literally, there is somebody else doing what you do in your business, right now. They have different problems, but they solve the same exact pain point for the same kind of client. They may be one town over or across the country.
And if you can collaborate, you can take your business to the next level and use their “yin” to your “yang” and really drive market share because you are awesome at production and they really shine at distribution. This is where partnerships, joint ventures, and mergers happen, but don’t think that you have to do these complicated pieces of business to grow. By simply buying or selling some equity in your company through stock certificates, you have the chance to grow market share because you filled in areas of your company with experienced partners that share some of the ownership responsibilities – and it’s easy to handle and sort out.