The Benefits An Organization May Derive From Investor Networking

By Angel Dudley


Investment is a core issue for business investors. Most of them prefer establishing new firms than reinvesting in the same business. Investor networking has therefore assisted these organizations in realizing their dreams. It involves engaging in such activities that might lead to identification of new opportunities for investment in a new different market. Large multinational companies conduct personal market research to identify market imbalance and structure and offer the best solutions to these. On the other hand, the small companies may not be in a position to effectively and comprehensively conduct a market research.

The funds required to carry out market research may be too expensive to be afforded by the small upcoming organizations. This has therefore led to the formation of investor groups to assist in linking the entrepreneurs to the corporate world.

However, people do invest for different purposes. Large companies, organizations and financial institutions may invest in order to create conducive social environment with the public alongside the financial returns while others invest in order to maximize their wealth. Here the investors tend to use capital in those investments that will harness the power of business.

Investments involve taking a high degree of risk to explore. The risk involved may include the financial risks, the customer culture and satisfaction, the legislation risk and the competition levels in the market. These, therefore has to be taken into consideration whenever an investment is to be made.

Business firms may engage in establishments of different enterprises for two major reasons. They may engage in order to provide the social services in the less developed regions or to increase their annual revenue. Both objectives often require proper and exhaustive analysis of the market structure. These include the consumer demand, taxation levels, consumer, behavior, expectations and specifications as well as the geographical environment.

This is therefore achieved by exploiting other avenues and establishing other enterprises in those places.There are several challenges that they entrepreneurs face in the business sector. These include the demographic, legal hurdles, geographical as well as cultural challenges. These challenges affect the performance of the business in their respective destinations.

When employment is created, the household income is generally improved which in turn leads to reinvestment within the society. These groups have helped in developing new ideas that are useful in introduction of new products into the markets.

When conducting a market networking the investors have to take into considerations the legal environment, social and cultural environment, economic environment and even the demographic environment. This is done to ensure that a good market is established before a product is finally launched for full commercialization. It also assist the management in the process of market segmentation in order to produce the products that will create their own demand in the market and increase their sales.

The investments also make the companies to widen their scope of social responsibility to cover their new environments and this in return leads to societal development. The investor networking has created a forum where the investors can interact and understand the consumer demand and new market opportunities




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