Consult to acquire business model

I have been playing around with an idea for a while.

Instead of building a product from scratch,

I help existing product to scale.

There are many small and medium companies stuck

in their growth and improvements.

Today's market is different when it comes to solving, creating and innovating.

It requires understanding many things:

• customer behaviors, experiences, market trends, and the different methods, approaches, and tools used to support them.

You can't scale and grow to cater to more customers if a business can't retain existing ones.

Because business owners view customers as coming and going, they aren't focused on growing their retention rate year over year.

When the rate of retention is going down year over year, it's a sign the business is struggling. Yet, many businesses blame the market.

I'm not sure if they measure the number of customers, but owners primarily focus on revenue.

If revenue is down, businesses typically plan to run ads and marketing campaigns.

Even with marketing efforts, it's possible they miss the right target segment and craft messages that don't resonate or compel prospects to take action.

So the problem may be one or more of the following:

• Product/service needing enhancements,

• Poor customer support systems,

• Negative customer experiences,

• Lack of digital services, processes, technology, tools, etc.

Who knows what else can be the problem.

Many small and medium businesses solve their problems with old methods, using solutions that worked in the past but don't work today.

Some are able to build something from scratch but lack today’s know-how to scale and innovate.

My goal is to help small and medium companies survive, especially those who lack access to consulting, skills, and the ability to hire talent.

Amid this rapid technological change and advancement that shake markets and influence skills, wants, needs, and customer behaviors.

There is a big opportunity to serve them; I can't do it alone, but there are enough to start with.

I was thinking of reaching out to businesses that may be falling behind and losing market share.

Anf offer them solutions to address their needs in exchange for a small percentage of equity.

Consult to acquire model only becomes effective if my provided solutions help them:

• Grow,

• Solve problems,

• Retain customers,

• Reduce costs,

• Increase efficiency,

• Improve processes, and

• Strengthen their positions.

I am thinking of offering a range between 5-20% equity stake, based on the size of the problem and effort required.

I would receive a percentage of sales monthly and continue to do so as long as I provide value.

I would become the advisor, problem solver, innovator, and strategy designer for the company.

There are many ways to implement this model. It should be flexible and customizable based on the owner, industry, and specific needs

Some arrangements I can commit to for the long term, while others may be short-term engagements.

For example, I could liquidate my equity within a 2-5 year term or choose to keep it indefinitely. Or I might opt to receive sales royalties for the first year or two.

We can shape the business model in any way that serves both parties when there is a transaction of value.

I'm interested in validating and testing this model. My plan is to work with 3-5 businesses every year and see the benefits within 1-3 years.

Treat this as a side project, focusing on selected industries. I'm not aiming to stick to one industry; working with diverse ones is more interesting to me.

The funny part is, a few days after writing this post, a founder I met a couple of months ago asked to meet for coffee.

I met with a founder on June 18, 2024, at 6:30 pm in Toronto

who has an early-stage AI receptionist startup. He wanted me to help grow it.

I got free account now. After playing with the account.

The product needs improvements in user experience design, a slight pivot, rebranding, and a unique selling proposition. and strategies for growth.

I can envision a market-fit.

The founder didn't offer me a stake or sales commission but said we can work something out. I told him I am a long-term thinker.

Anyway, I did some research to find any similar models to what I call 'consult to acquire'.

I found Acquisition .com offers value for free by Alex Hormozi, who ensures that entrepreneurs use his processes and teachings to grow their businesses.

When they reach the revenue levels they estimated,

they take a stake in the business. The specific numbers and percentage are agreed upon behind closed doors.

It inspired me to explore this type of model since I have the entrepreneurial spirit and skills.

That's all. I am keen to hear your feedback.

Thanks for reading!

Ahmed

PS two things I can help you with:

1. Run a business design discovery

Exploring and defining the strategic direction, objectives, and key elements to achieve market relevance. uncover opportunities, understand user needs, and design solutions that align with business goals.

2. Guiding and advising

Guide you and help you on a project you’re working on; need help to set direction to reach desired outcomes.