Buying groups can be a really effective way for small businesses to compete with big-box stores. But sometimes they aren’t for everyone. If you’ve joined a group and you are ready to leave, then you have some things that you need to keep in mind to minimize the impact it will have on your business.
LEAVING TO JOIN ANOTHER GROUP
If you are just tired, frustrated, or “done” with your current buying group, but you still see the benefits to staying with a group, then moving to another group might be the best option for you. You can retain the ability to save with group purchasing power, but find another group that just meshes with your needs better.
In this case, you have a few legalities you have to deal with you. You have to terminate your membership with your current group, as well as sign up for the new group.
SELLING YOUR BUSINESS
In some cases, you are just ready to be out of the industry for whatever reason. Whether you are retiring or just moving on to other things, you can let your business stay as a part of the group while selling it to a new owner. In many cases, another member of the group will end up buying it. They generally already run similar businesses to yours, and could potentially already be familiar with your business through the group.
Legally, you have some stuff you have to deal with. You have to negotiate the sale of your business as well as the transferring of your group membership.
Maybe you are just done with buying groups altogether and you want to walk away altogether. This will have a serious impact on your day-to-day business. Your ability to purchase at a reduced rate will be gone, so you will have to most likely raise your prices to compensate. This could cost you business, so you need to bear that in mind. You also will have more of the day-to-day paperwork to deal with since you will ordering your inventory and paying each supplier individually vs just paying one invoice to the group.
GET PROFESSIONAL HELP
No matter which direction you want to go when you are getting ready to leave, you will have a lot of legal hurdles you will have to overcome. So it’s especially important that you have an experienced attorney that specializes in Buying Groups and understands the intricate needs you have. We’ve been helping people in your situation since 1985 and will be happy to help you navigate these complexities.