This model of business development involves investing financial resources in various sources of profit. For example, buying shares of other corporations or working on the stock market.
The main task in this case is to form a solid foundation for the enterprise in order to maintain its position under the negative influence of external factors. Among the secondary plans for achieving the goals, one can single out such as increasing the recognition of the company and increasing revenues.
Diversification of risks
This strategy involves minimizing the risks of total loss of capital by distributing it in various areas of activity. With this model, areas with the lowest risks of loss of financial assets are selected for investment.
It is important to correlate the boost your business with our doctor database level of profitability of the industries selected for investment, since sources with a low level of risk generally do not imply high profits. To reduce the risk, you can also use unrelated assets.
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Diversification of the economy
The strategy under consideration is applied not only in small, medium and large businesses, but also at the level of the state economy. This helps the country to develop actively and not depend on the foreign economic situation.
The raw materials orientation of the Russian economy leads to the fact that it is directly dependent on oil and gas prices. This situation has changed little in recent years, despite constant attempts to diversify the domestic system.
Most developed countries in the world are characterized by economies in which the main industrial sectors are evenly developed.
Diversification of investment portfolio
This process involves distributing financial resources in such a way as to minimize the risks of investing. In order to ensure sustainable growth of profits, the overall risks must be significantly less than for each individual type of investment.
Diversification of investment portfolio
Money can be invested in:
securities;
foreign currency;
real estate;
gold and other precious metals.
Any investment opportunity must be assessed based on three parameters: level of profitability, degree of risk, and correlation with other financial investments.