Photo by Elsa Gonzalez on Unsplash
Vertical Integration is when you acquire (or become) a supplier or customer of your current business.
It is growth via supply chain.
And the most common way that a small business Vertically Integrates is by buying a building rather than leasing space.
You can turn one of your biggest Operation Expenditures (OpEx) into a profit center that starts building equity. You may even become cashflow-positive if you finance it right.
In fact, it’s very common for long-time business tenants to buy the building they lease.
Owners who do this will often keep the building when they sell their business, having a stable tenant already in place.
Not only can you capture short-term profit, but you can set up long-term retirement cashflow long after you’re out of the day-to-day of the business.
Is it time to buy?
Onward and upward,Simon Trask
(I’m a small business owner, advisor, and advocate – learn more here)
This is from Trail 10 of Profit Hiker: 11 Trails to gain lasting elevation in your business. Find the book right here and the program over there.
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