Demand Your Own Supply

Vertical Integration is when you acquire (or become) a supplier or customer of your current business. It is growth via supply chain.

Here are the 3 most common ways for a small business to vertically integrate:

1. Buy a building and become your own landlord.

2. Start a new business that becomes a supplier of your current business.

3. Look for a business to buy that is already a supplier.

The most common way that a small business Vertically Integrates is by buying a building rather than leasing space. Real estate is generally a much safer integration than buying or building another business.

Vertical integration is an immediate win/win. Both businesses benefit right away.

Typically the downstream business (the one closer to the end customer), will get better products, terms or service. Meanwhile the upstream business will get a reliable customer relationship.

Warning: Vertical Integration is an expert-level hike. I call them “Class 3” hikes in my program, and they’re not for everybody.

However, when you bolt together two businesses like this, it opens up a lot of options for growth on both ends of the deal.

Think vertical.

Onward and upward,
Simon Trask

P.S. – I cover Vertical Integration in Trail 10 of my program Profit Hiker: 11 Trails to gain lasting elevation in your business. Check it out here.