Rus Articles Journal

Growth as means of a survival

in the period of economic crises and recession of a consumer demand at businessmen and owners of business arises need for search of decisions on saving the commercial project.
In one case businessmen minimize expenses, trying to find the minimum effective size of the company at which find the smallest volume of the sold products capable to minimize costs of the enterprise.
Other owners of business make an attempt to go on the way the “gold“ middle, carefully pouring in small sums, assuming to trace, efficiency of investments. However such tactics is not always capable to show positive result and to stabilize a situation.
Exists the practice, and quite successful when to be made integration of the enterprise for the purpose of receiving additional profit due to bigger specialization of work and management, use of more effective equipment and distribution of costs of firm between a large number of products.
Scaling of the enterprise brings a positive effect from modernization of technological process, a control system, use of a manpower and the capital. In this case it is important to know the level of an effective limit of integration when there comes the moment of a negative effect of scale where further integration can lead to increase in expenses and growth of costs.
Merger of enterprises occurs or by attraction of additional resources, or by means of merge and merger of other companies.
the Most widespread way to use the loan capital received in the form of the debt obligation on the credit or the contract of leasing. Unlike own investments of owners, has a deadline and is subject to return. Periodic charge of percent in favor of the creditor is usually provided. The loan capital is subdivided on short-term and long-term.
Is possible attracting investors and increase in number of owners of firm. The public offer of shares of the company allows to get access to the capital of a much bigger circle of investors, and liquidity of the enterprise sharply increases. After carrying out the IPO company becomes public, and the reporting - clearer and transparent that is an important priority of many companies.
of Integration of business and the capital, also perhaps by method of merge and merger of other companies as a result of which in the market larger players, instead of several less considerable appear. According to a number of economists, rotation of owners is necessary for maintenance of efficiency and prevention of stagnation.
Will hide and to wait, put or raise funds, expanding and integrating the company - to solve, it is necessary to businessmen, studying market capacity on demand of their production.