Thursday, 3 October 2013

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.

These groups normally have some functions or forums where they engage in training the members as well as sharing their experience to the young entrepreneurs who would wish to join the organization. Through these organizations the investors are able to know and understand the market trends and the new opportunities in the markets.

The groups are formed according to the type of business one engages in. For instance the banking sector will form their group, education sector will also form their group to cater for their need. In these groups, they are able to get knowledge about the markets from where there members come from. Through sharing and thorough interactions they are able to get the discrepancy in the respective markets.

New businesses provide employment opportunities for the unemployed hence reducing the social vices such as insecurity and poverty. It increases in the number of goods and services being produced within the economy leading to low market prices of commodities.

With the rise in the number of players coming into the business, competition has become more stiff and hence only the smart investors are able to thrive well in the market and ensure their continuity of the enterprise. The major aim of the business is to maximize profits.

Investment is one of the key pillars that drive the economic development and social empowerment in the community. Societies with large number of investments often obtain commodities at cheaper prices, they also enjoy the benefits of clean water and other social responsibilities offered by the businesses.

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.

Despite all these investors are able to liaise with the authority through these networking groups. This is to ensure that the legislation passed by the authorities do not affect the activities of the business negatively. Some of these groups have even gone to the extent of setting their own insurance cover to cater for any member who might by any means suffer a loss in the investment.

Investor networking has enabled the business firms develop products that satisfy the consumer demand and expectations. On the part of the supply, it has enabled the management exploit new markets to increase the sales. This has lead to increase in the amount of revenue for a business organization




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