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Looking for help.

DiVolvoDiVolvo subscriber Posts: 2
edited January 2007 in Business Planning
Looking for honest help. An Advsory board on the net.
I don`t want to start form scratch. I would like to aquire existing companies and incorporate my product ideas into an existing proven business model.  My ideas are just variations on the current model.  Their advantages are greater efficencies for the customer.  The second variation would also help the customer defray some of their cost and raise our profitablilty, more research will confirm or modify this initial assumption.  I have two targets in mind.  Current ownership is really disinterested but are trapped,  so they assume, live still of their income.  Combined these two companies would generate annual revenues of about $ 20 million and after some kiazen and enthusiaism of new ownership have a net  profit of 16%.  I also have three other ideas to be implement in the 2nd, 4th ,and 6th  year.  They  need further development. I know they would lower direct cost and I think they would add at least 5-6% net profit.  Right mow I am concentrating on my orginal model so these are partially blue sky. But they are also proven businesses.
We are part of the fastest-growing segment of one of the nations largest and oldest markets.  Our economic impact is estimated to include:
                                                           $148 billion in output
                                                           $ 64 billion in labor income
                                                           $  7 billion in indirect business taxes
                                                           $ 95 billion in value added
This is a brick and mortar operation. There are no real barriers to entry and no way to create a proprietory products or any other barriers to competition.  The only real way to maintain revenues and profits is the old fashion way, earn it. We are somewhat affected by economic down turns by a loss of revenues from ancillary services but the core business is not.  There may be a reduction in net profits in slow times but we can recoup with a higher percentage in price increase in good times.
 There is one clear market leaders but they have some serious problems.  They are currently restructing management and there are serious rumours of looking for a buyer. Roughly 2/3 of their revenues come from one segment and higher percentage of their net profit.  Amoung their current and espically former clients they have a poor reputation.  When the rest of us acquire their former customers we get a higher price because we use their pricing structure as a cause of inadquate performance.
Where I really need help is in market reserach and a sounding board.  Operations is my strength and numbers are somewhat easy once I grasp the terminology.  Look forward to some good conversations
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