It’s common investment wisdom to not put all your eggs in one basket. But when it comes to running a business, many owners do just that. From expanding your client base to buying a different type of medical transportation business for sale, diversifying your business has the potential to reduce risk, boost profits, and increase value.
Adding new customers doesn’t have to mean adding the same kind of customers. If your clients are mostly individuals, consider branching out by pursuing contracts with medical businesses such as dialysis clinics and assisted living facilities. Vice versa, if you contract with mostly medical facilities, you may want to consider marketing your services to individuals. In the instance of an economic downturn or structural changes to the healthcare industry, having a varied mix of customers insulates against client (and profit) loss.
The medical industry comes with its own complex set of billing procedures, legal demands, and qualification requirements. Once you own an established ambulance business, you may have the infrastructure in place to begin offering other medical services at a reduced implementation cost. For instance, if you already operate an emergency medical transportation company, it may be relatively simple to add a complementary NEMT business. Some business owners have even found success leveraging their transportation experience to add a courier service to their company, often to meet the needs of the hospital and assisted living facility clients they already serve. As with adding new customers, additional services can increase demand and reduce risk.
Mergers and Acquisitions
While stepping out of your comfort zone as a business owner can seem daunting, business owners do it all the time through mergers and acquisitions. Whether you buy a complementary business with the anticipation of providing separate services or join forces with a similar medical transportation company in hopes of bringing your current services to new markets, M&A deals allow buyers a simpler way to diversify.
When you acquire an established ambulance company with experienced employees and a list of customers, there’s less worry that you may be buying expensive new medical equipment for a new business opportunity that never pans out. Because banks prefer to lend money to a proven business and sellers are often willing to offer their own financing, securing funding for your diversification plans may also be simpler when you invest in a medical transportation company for sale.
Making big changes to your business is always somewhat of a gamble. But when those changes involve diversification, the benefits often balance out the risk.