Where to get money for development

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Assessing the degree to which each area of ​​the company's activity corresponds to its overall strategic development prospects . At this stage, the extent to which the new industry corresponds to the company's current production cycles and how well it can complement the overall corporate strategy is studied.

Ranking of business areas by degree of attractiveness for investment and allocation of priority divisions into which capital will be directed. At this stage, strategic goals and objectives are defined for each new industry.

Creation of a corporate diversification strategy based on an assessment of the company's investment portfolio and individual areas of activity.

Strategic diversification analysis helps to answer the following basic questions:

which divisions operate norway email list in the most promising economic areas;

which areas of the company's activities are in the final stages of the production life cycle;

what investment sources does the company have;

whether the core business area is capable of providing stable profit and profitability;

how vulnerable is the enterprise's business portfolio to crises and seasonal fluctuations in demand;

which corporate divisions are not promising in terms of development;

what is the position of the firm in relation to competing firms in the market.

Where to get money for development
There are several sources for diversifying business opportunities. Let's take a closer look at each of them.

Personal savings. This option allows you to save on interest payments on bank loans, but significantly limits the amount of capital and slows down the process of implementing a diversification strategy.

Third-party investors. Searching for external investors is advisable if there is maximum confidence in the success of the idea. But even in this case, the negotiation process can be very long, which will inevitably affect all other stages of diversification implementation.

Government funds. A detailed business plan can help in obtaining a subsidy or grant. However, even in this case, the time for preparing the necessary documentation and participating in the competitive selection can significantly slow down the implementation of the project.

Crowdfunding . This method opens up the possibility of raising funds all over the world. However, it cannot be done without active promotion and huge expenses on advertising campaigns. In addition, if the planned diversification is cancelled, all the money raised will have to be returned to investors.

Banking organizations. Despite the additional costs in the form of interest payments on loans, this source of financing has significant advantages: prompt terms for receiving monetary assets, no obligation to share the profit received with investors, the ability to use monthly payment installments in the event of unforeseen circumstances.


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Business Diversification Strategies
There are several diversification strategies. Let's look at each of them in detail.

Business Diversification Strategies

Conquering new industries
There are three variations of implementation of this model:

Absorption (vertical, horizontal or conglomerate) of an existing company without its consent. This option immediately ensures stable connections with suppliers, guarantees technical and information support, preserves the promoted brand, as well as the base of regular and potential buyers of products. All this allows you to quickly increase the required production volumes and strengthen competitive advantages.

Opening a separate enterprise under the management of the parent corporation . This path is advisable if the acquisition of an existing company is more expensive financially, and also if the business has enough resources and time to form a working team, establish relationships with suppliers, organize production, overcome entry barriers to the market and find promising distribution channels for products.

Organization of joint companies. Most often, this method of diversification is used to conquer foreign markets, form significant competitive advantages, gain access to resources, contractors and qualified specialists.