A model business?
The right business model is imperative and evolution not
revolution reaps rewards when implementing it. It also means
businesses are less likely to store up problems for the
"Recent economic conditions have been difficult," explains Peter
Wright, Finance Wales’ investment director. "Some businesses
haven’t made it, but those that have realise that creating the
right business model isn’t an option, but key to their future
Numerous factors can impact business model changes. Helping your
clients build a sustainable business model and the right growth
strategy requires careful thought to turn perceived disadvantages
into real opportunities.
Successful businesses constantly evolve their business models. It’s all too easy for businesses to do what they’ve always done and overlook the potential for their products as well as opportunities in existing and new markets.
Peter WrightFinance Wales' investment director
Diversifying your product range
"Diversifying your product range can be attractive for a number
of reasons," Wright continues. "Businesses can often benefit
from economies of scale, exploit unused capacity and grow their
revenues and margins."
Finance Wales has invested a number of rounds in Outlook
Expeditions, the UK’s top youth expedition company. Outlook used
Finance Wales’ £710,000 investment to achieve ATOL registration and
evolve its business model by providing short as well as long
expeditions. The company has not only grown its revenues but has
shortened its sales cycle and reduced the effects of seasonality
inherent in its key markets.
Find out more about our follow-on investments in Outlook
Exploiting untapped markets
There are clear cost and efficiency benefits to exploiting
untapped potential in existing markets and Finance Wales has worked
with businesses and their advisers to consider these and structure
suitable investment packages.
UK aerospace supplier, Ramp Industries, used a £200,000 investment
from Finance Wales to establish a new manufacturing division. The
company will now use this additional capacity to expand its range
of services and exploit new and existing UK markets.
Taking an international view
Increasingly crowded domestic markets, the strength of the pound
or the potential for greater margins can make expansion into
international markets worth considering. Such markets may have
fewer competitors or offer the potential for higher margins and the
opportunity to achieve increased economies of scale.
"We’ve worked with businesses to structure suitable funding
packages to help evolve their business models. By being ambitious
businesses can accelerate their growth plans and turn perceived
disadvantages into real opportunities." Wright concludes.
Many of our portfolio companies are finding new opportunities
outside their domestic markets.