The buzz of starting from scratch

The shopping buzz can be addictive. Buying things to improve yourself, your life, your home or your business induces a natural high, if you know you are enhancing what you already have.

Acquisitions are currently the flavour of the month in the channel because they can be a quick and easy way of achieving an end goal: be that increased product capabilities, wider regional or international coverage, or access to new sectors and markets. They also give many a senior channel executive the equivalent of the shopping buzz (although they may be reluctant to admit it) and the potential to increase size and buying power is a rush many an executive enjoys.

However, while buying a company undoubtedly has its advantages, there is also a lot that can be said about starting a company, or a division from scratch.

Distributor Magirus announced last week that it is creating a security division, building it from the ground up. The firm was interested in buying InTechnology’s distribution division, which would have given it the desired security skills. However, Magirus pulled out of the race and last week decided to go it alone and build organically.

A risky strategy, yes. The time, cost and sheer effort that it takes to get a new division off the ground, especially in what is already a crowed security arena, will be tough.

But such a strategy also has its merits. Magirus acquired the European arm of Allasso earlier this year and has already spent time integrating the products, staff and infrastructure. Buying another firm and having to integrate that with its UK operation, as well as the only recently integrated Allasso arm would be time-consuming and costly.

By building its own division, Magirus will have the same back-end infrastructure, the same staff and company culture and can take on and make decisions concerning which vendors and resellers to do business with, starting with a completely clean sheet.

And creating something from scratch and watching it grow is likely to hold as big a buzz as any shopping spree could give.