The benefits of industry aggregation.

In the classic text of the human potentials movement, Think & Grow Rich, Napoleon Hill tells the unforgettable story of the formation of US Steel by Andrew Carnegie, J.P. Morgan, and a host of other tycoons. This may well be the most widely known example of an aggregation in history due to the immense popularity of the book. The combined entity then went on to dominate its industry. Companies which had not participated in the combination suffered as a result.

As a successful entrepreneur with a track record of successes under your belt, you will have observed first-hand that that the skills, mindset and resources required to create the first $1M in annual sales are very different from the skills, mindset and resources necessary to take the same business from $1M to $10M, and different again from $10M to $50M plus.

HPU acknowledges and commends your success to date. We are also pleased to inform you that we provide the full spectrum of resources required to take your business to its next level, as and when required, for every stage of your journey. We are committed to helping you achieve your business goals, no matter where you are on that journey today.

Much of business success is about achieving critical mass and building momentum. This is what HPU's aggregation model is designed to do for you.

Consider These Benefits of Aggregation

Aggregation brings the entrepreneur owner the following benefits:  

One Company’s Weakness Can Be Another Company’s Strength– For example, one aggregated company may be strong in customer service and quality control but weak in marketing, while another aggregated company is strong in marketing but weak in customer service and quality control. The combined management team contains the know-how to make both organizations stronger and more profitable.

In an aggregation, all entities have maximum incentive to help each other succeed.

Size Does Matter – Many smaller companies are simply not large enough to provide the type of employee benefits package required to attract highly qualified employees. Combined through an aggregation they will employ enough people to qualify for top quality, cost effective health care insurance coverage as well as be able to set up a properly funded pension plan.

Easier Access to Much More Cash – Few small companies qualify for a prime rate unsecured line of credit. Fewer still could qualify for a public offering to raise equity capital, and without the ability to go public, cannot raise capital from the vast majority of  investors who have no interest in owning a minority position in a private company with illiquid stock.

Together, they may be able to qualify for low interest bank financing, have enough earnings to qualify for a public offering or reverse merger, and with publicly traded stock, they can attract private investors who now have an exit strategy (i.e. a way to cash out by selling their shares to the public down the road).

Synergies Abound Producing Added Profit – Another important benefit, and one that is often less obvious, is that some of the aggregated companies will be in a position to either cross-market with or distribute the product or services of one or more of the others, thereby dramatically increasing their combined sales and profits.

Innovation to Eclipse Competition – The mind power and creative force of the cross-fertilization between entrepreneurs linked through a common financial enterprise is awesome. The opportunity for innovation can and will produce products and services that would not exist if not for these dynamic individuals joining forces. The resulting completive edge alone can justify the union.

Higher Visibility Pays Off – Invariably the aggregated companies will enjoy a more prominent place in their industry and benefit from the resulting increased prestige and visibility. Interestingly, as each aggregated company is added to the whole, it becomes a Public Relations opportunity with trade magazines and newsletters hungry for the latest buzz and consumer publications anxious to hype the entrepreneurs "making it big" in their communities. The end result is the ability to create a lasting and valuable brand identification that can dramatically accelerate sales in a regional, national or even global arena.

There are still more benefits to aggregation. Don't  risk falling behind the competition.

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