By Cristhine O

Is Your Business a Delight, Essential, or Relief?

Which bracket does Akbosh Investments fit into?

In the realm of business evaluations and strategic exits, it’s crucial for all involved parties to discern the nature of the business in question. Strip away the industry specifics, and you’ll find that every business can be categorized into one of three fundamental types.

Akbosh Investments | 601 Innovation Way, Suite 111, Ormond Beach, FL 32174 | info@akbosh.com

Every business can be likened to either a delight, an essential, or a relief.

Ponder this: given the choice between a delightful treat, an essential supplement, or immediate relief, which would you gravitate towards?

The consensus would likely be that it hinges on the circumstances. Someone with a headache would prioritize relief over a treat. Conversely, someone lacking essential nutrients might prioritize the supplement. And for someone feeling down, a delightful treat might just be the pick-me-up they need.

Business choices
Life is a series of choices.

Life constantly presents us with choices, and we often rank our needs over our desires. In lean times, desires are typically the first to be sacrificed. Those middle-ground items (essentials) that we ought to have might be prioritized by some, while others might forgo them. The choice largely rests on how consumers perceive the product’s value.

Delights cater to our desires. Essentials address our “should haves.” Reliefs are our undeniable necessities.

Examples of Delights, Essentials, and Reliefs 

Consider entertainment expenses like concert tickets or cinema passes – these are delights. Essentials encompass offerings like gym subscriptions, health boosters, and specialized vehicle upkeep. Reliefs, on the other hand, are services like emergency AC fixes, healthcare, vehicle repairs, and basic utilities.

While delights can yield substantial profits, investors often lean towards businesses offering essentials and reliefs. Reliefs address urgent needs. Even during financial downturns, consumers will stretch their budgets to secure these necessities, making such businesses more resilient.

Delights

Essentials bridge the gap between Delights and Reliefs. They’re not just indulgences but offer tangible benefits. They can simplify processes, bolster health, or even lead to financial gains. Examples include health supplements, eco-friendly cosmetics, ethically sourced beverages, and financial planning apps.

Many businesses align with the Essential category and can transition between categories. Essentials generally hold more market value than Delights due to their inherent value proposition.

Essentials serve as a link between Delights and Reliefs.
Essentials serve as a link between Delights and Reliefs.

Consumer behavior towards Essential products differs from that towards Delight products. For instance, someone might cut back on dining out to maintain their gym membership. Or they might opt for a pricier, cruelty-free cosmetic product over a cheaper alternative.

Akbosh Investments collaborates with both buyers and sellers. Occasionally, sellers have specific requirements or timelines. Unique circumstances don’t negate potential deals.

Deal structures vary. Many sellers overlook diverse financing options for their business sale. While all-cash deals are rare, most transactions involve a mix of down payments, seller financing, revenue sharing, or equity agreements. Sellers can benefit either once or, as recommended, on an ongoing basis.

Reliefs

Reliefs are non-negotiables. They’re items or services that, even if begrudgingly, people feel obligated to pay for. Examples include food, shelter, utilities, internet, and basic hygiene products. Businesses offering reliefs typically command the highest valuations.

Businesses that provide relief often achieve the highest market valuations.
Businesses that provide relief often achieve the highest market valuations.

Akbosh Investments recently engaged with a unique relief business: an automated chicken coop door manufacturer. Traditional coop doors are manual, requiring farmers to adjust them multiple times daily. An automated door not only offers convenience but also protection, akin to a jeweler safeguarding diamonds. This door can swiftly shut at the sight of predators, reducing chicken losses. Such problem-solving capabilities make this product indispensable, even if it comes at a premium.

Evolving Businesses

Businesses can transition between categories. For instance, sports teams can evolve from being mere delights to essentials or even reliefs, depending on their branding and community engagement.

Understanding your company's category helps investors and business owners assess the position in the market.
Understanding your company’s category helps investors and business owners assess the position in the market.

Understanding your business’s category aids both business owners and investors in gauging market positioning. It sheds light on consumer decision-making and compels businesses to introspect on the value they deliver. For instance, DNA kits have evolved from mere ancestry tools to vital health diagnostic tools.

In essence, recognizing whether your business is a delight, an essential, or a relief can provide invaluable insights for strategic planning and investment decisions.

Get Your Business Valuation Booster Kit

Click on the button below to get INSTANT ACCESS to the $997 Business Valuation Booster Kit for FREE.

Akbosh Investment Group is an investment management company that acquires, scales, and sells companies that benefit all stakeholders at large.

WANT TO STAY IN TOUCH?

    Subscribe to stay up to date with Akbosh Investment Group and hear recent news about its investments.

    Copyright © 2023 Akbosh Investment Group, Inc. All Rights Reserved