Circular Integration
Business accelerated....
Vertical integration has been a concept that many companies have attempted to achieve for many years. Vertical integration as a concept involves the idea that you make the attempt to control the entire chain of delivery of a product. You control the raw material, the manufacturing, the distribution, and the retail sales. The idea with this concept is that you have the ability to gain profit at every level of the vertical steppingstones as well as controlling the choke points of potential hiccups and slowdowns. This type of integration has been more and more difficult to achieve for many companies because we are in a global economy, and it is difficult to line up the necessary vertical stepping stones.
While vertical integration is a noble goal, James Houston has come up with the concept of circular integration. This is the idea that if a company possesses the means to control the supporting businesses around a centralized business, then you have an Immediate increase in profits across each business category. For example: if you purchase a donut shop and you also own an accounting practice then you automatically have a new client for the accounting practice as well as immediate up to date advice from your own people who will treat your business with white glove service. a multinational company may simply pull these resources in house, but if you do that you lose the ability to also sell those services to other companies to help leverage your profit.
Fulcrum has circular integration for itself and as a business consulting firm, we can take that circular integration and drop it around any business we are working with. Each point of that circle connects to form a communication chain that can link up to provide services that truly fits together like pieces of a puzzle. Your insurance team is talking to your accounting team your accounting team is talking to your tax team, your tax team is talking to your retirement planning team, your sales team is talking to your marketing team, and so on. So many times, these services are so separate from each other and distinct in their function that they have no idea what their counterparts are doing. This results in a very poor business plan.
One of Sun Tsu’s major points in his strategy masterpiece, THE ART OF WAR, is that every portion of your business must communicate with every other portion so that it functions like a well-oiled machine. If your accountant doesn't know what your retirement planning specialist is doing, that can cause major problems, or at least an inefficiency that doesn't need to exist.
We've done it for ourselves now allow us to help you as well.
While vertical integration is a noble goal, James Houston has come up with the concept of circular integration. This is the idea that if a company possesses the means to control the supporting businesses around a centralized business, then you have an Immediate increase in profits across each business category. For example: if you purchase a donut shop and you also own an accounting practice then you automatically have a new client for the accounting practice as well as immediate up to date advice from your own people who will treat your business with white glove service. a multinational company may simply pull these resources in house, but if you do that you lose the ability to also sell those services to other companies to help leverage your profit.
Fulcrum has circular integration for itself and as a business consulting firm, we can take that circular integration and drop it around any business we are working with. Each point of that circle connects to form a communication chain that can link up to provide services that truly fits together like pieces of a puzzle. Your insurance team is talking to your accounting team your accounting team is talking to your tax team, your tax team is talking to your retirement planning team, your sales team is talking to your marketing team, and so on. So many times, these services are so separate from each other and distinct in their function that they have no idea what their counterparts are doing. This results in a very poor business plan.
One of Sun Tsu’s major points in his strategy masterpiece, THE ART OF WAR, is that every portion of your business must communicate with every other portion so that it functions like a well-oiled machine. If your accountant doesn't know what your retirement planning specialist is doing, that can cause major problems, or at least an inefficiency that doesn't need to exist.
We've done it for ourselves now allow us to help you as well.