Small "ethical" companies that are really owned by huge corporations

Britesea

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Those small companies didn't HAVE to sell to the larger ones. If you have investors and shares you are vulnerable to a hostile takeover; but if you own your business outright and it is successful, how can someone like Con Agra force you to sell your business to them? It seems to me that the small businesses that sold out were just as lazy and greedy as everyone else.... Is there something I am missing here?
 

i_am2bz

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I still remember how heartbroken I was when B&J sold out to Unilever. :hit :rant
 

colowyo0809

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Britesea said:
Those small companies didn't HAVE to sell to the larger ones. If you have investors and shares you are vulnerable to a hostile takeover; but if you own your business outright and it is successful, how can someone like Con Agra force you to sell your business to them? It seems to me that the small businesses that sold out were just as lazy and greedy as everyone else.... Is there something I am missing here?
Actually, you are pretty accurate. In theory, companies like Con Agra, General Mills, Colgate, etc cannot force you to sell your business if you are sole proprietor, or even a partnership. You really only open yourself up to that if you have shares and investors, although you can escape that if your original agreement with your investors is that you pay them back plus a certain amount extra. Pay them back and the business is yours and, once again, you close that loop. However, there are times when the business owner is still forced to sell their company. These times usually revolve around being strong armed into it. You have several companies who deal in the same area who will drastically lower their prices in an "extended sale" and they can absorb the cost because they are so large. the smaller company cannot and so is forced to sell to whomever gives them the best offer. Or, you have companies that suddenly decide to go more environmentally friendly, or organic, etc and buy all the supplies of something integral to a smaller company and the smaller company cannot compete this way and is forced out. It's the way so many ranchers who used to finish their cattle on their lands and send them to the slaughter house were forced out of business or forced to conform to the same practices as conagra and the others.
 

freemotion

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Fight back! Save and trade seeds (as many here do....I have several varieties drying on my counter now). Buy from places like Baker's Creek.

And make your own Burt's Bees products right in your own kitchen...it is amazingly simple. You probably already have all the ingredients, maybe just need one or two. I made a bunch of lip balms a couple years ago because I couldn't find a formula that didn't have artificial ingredients/fragrances that turned my stomach. Without paying a fortune for something that I'd probably lose in a couple of weeks anyways! :p I had fun passing the extras out to my other crunchy granola friends, or crunchy granola wannabees.... :lol:
 

FarmerJamie

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Britesea said:
Those small companies didn't HAVE to sell to the larger ones. If you have investors and shares you are vulnerable to a hostile takeover; but if you own your business outright and it is successful, how can someone like Con Agra force you to sell your business to them? It seems to me that the small businesses that sold out were just as lazy and greedy as everyone else.... Is there something I am missing here?
Not trying to argue, but really? :hu
From my economic classes, the primary function of business is to increase shareholder wealth that's it.

Unless there are specific patents involved, I don't think there is much preventing anyone from starting up their own venture for their own business. Anyone can start a company with the mission to break even and provide jobs, but I question how long the business would last.
 

THEFAN

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freemotion said:
Fight back! Save and trade seeds (as many here do....I have several varieties drying on my counter now). Buy from places like Baker's Creek.

And make your own Burt's Bees products right in your own kitchen...it is amazingly simple. You probably already have all the ingredients, maybe just need one or two. I made a bunch of lip balms a couple years ago because I couldn't find a formula that didn't have artificial ingredients/fragrances that turned my stomach. Without paying a fortune for something that I'd probably lose in a couple of weeks anyways! :p I had fun passing the extras out to my other crunchy granola friends, or crunchy granola wannabees.... :lol:
I agree 90% with this statement. You lost me in the crunchy granola part but I digress. Trading amongst members of this forum is a great start. :thumbsup
 

moolie

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FarmerJamie said:
Britesea said:
Those small companies didn't HAVE to sell to the larger ones. If you have investors and shares you are vulnerable to a hostile takeover; but if you own your business outright and it is successful, how can someone like Con Agra force you to sell your business to them? It seems to me that the small businesses that sold out were just as lazy and greedy as everyone else.... Is there something I am missing here?
Not trying to argue, but really? :hu
From my economic classes, the primary function of business is to increase shareholder wealth that's it.

Unless there are specific patents involved, I don't think there is much preventing anyone from starting up their own venture for their own business. Anyone can start a company with the mission to break even and provide jobs, but I question how long the business would last.
Totally hear you on the "primary function of business", however I think the general belief is that people who start these types of businesses have other goals in mind such as providing a better product than is generally available.

Most small business entrepreneurs get into business because it allows them to do what they love, and get paid for it. They soon find out that they need to work on the business more than the "what they love" that got them into it in the first place. It is selling out, and most people who sell would say so.

(I've owned my own small business since 1999 and regularly network with other small business owners.)
 

Britesea

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FarmerJamie said:
Britesea said:
Those small companies didn't HAVE to sell to the larger ones. If you have investors and shares you are vulnerable to a hostile takeover; but if you own your business outright and it is successful, how can someone like Con Agra force you to sell your business to them? It seems to me that the small businesses that sold out were just as lazy and greedy as everyone else.... Is there something I am missing here?
Not trying to argue, but really? :hu
From my economic classes, the primary function of business is to increase shareholder wealth that's it.

Unless there are specific patents involved, I don't think there is much preventing anyone from starting up their own venture for their own business. Anyone can start a company with the mission to break even and provide jobs, but I question how long the business would last.
I didn't actually mean that I think the small business owners are greedy or lazy, just using the phrase in a semi-sarcastic manner. I agree that the primary function of trade (aka business) is to make a profit for the person engaging in it. I was simply pointing out that before we get so angry with the big guys, it just needed to be pointed out that they would not be owning these small companies if the owner refused to sell. It is definitely getting harder to keep a small business going these days, but it is not impossible.
 

colowyo0809

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moolie said:
FarmerJamie said:
Britesea said:
Those small companies didn't HAVE to sell to the larger ones. If you have investors and shares you are vulnerable to a hostile takeover; but if you own your business outright and it is successful, how can someone like Con Agra force you to sell your business to them? It seems to me that the small businesses that sold out were just as lazy and greedy as everyone else.... Is there something I am missing here?
Not trying to argue, but really? :hu
From my economic classes, the primary function of business is to increase shareholder wealth that's it.

Unless there are specific patents involved, I don't think there is much preventing anyone from starting up their own venture for their own business. Anyone can start a company with the mission to break even and provide jobs, but I question how long the business would last.
Totally hear you on the "primary function of business", however I think the general belief is that people who start these types of businesses have other goals in mind such as providing a better product than is generally available.

Most small business entrepreneurs get into business because it allows them to do what they love, and get paid for it. They soon find out that they need to work on the business more than the "what they love" that got them into it in the first place. It is selling out, and most people who sell would say so.

(I've owned my own small business since 1999 and regularly network with other small business owners.)
I must say, I am looking at starting my own fully Gluten Free Bakery after we get to Kansas. I plan on starting small, offering maybe a couple different breads and a couple muffins or cookies and moving from there. but, my main goal will be to provide good fresh gluten free baked goods to people at an affordable price, using local ingredients whenver possible, and expanding to a full line of baked goods and even a small fully gluten free cafe. I'm well aware that a portion of my time will be spent dealing with suppliers, customers, paying bills, etc, but i also don't ever plan on selling to make a profit. I'm in it for the betterment of the community, not to get rich.
 
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