Global 1080’s Business Fables – Expanding operations
*Editor’s Note: This is the fourth installment in a series of “fables” meant to teach a lesson. In this case, it is about opening a successful subsidiary.
Once upon a time, in the vibrant city of Techville, there was a mid-sized tech company called InnovaTech. They specialized in developing innovative software solutions for businesses. Over the years, they had built a solid reputation and clientele.
The CEO of InnovaTech, Lydia, had an entrepreneurial spirit and was always looking for opportunities to grow and diversify. One day, she noticed a significant need within their client base: their customers needed assistance with integrating InnovaTech’s software into their own systems. Seeing an opportunity, Lydia decided to start a subsidiary focused on tech consulting and integration services.
Step 1: Conducting market research
First, Lydia and her team conducted comprehensive market research. They confirmed that many of their clients struggled with integration and would likely value a consulting service. They also found that while other consulting services existed, a service from InnovaTech, who knew their software inside and out, would offer unique value.
Step 2: Formulating a business plan
Based on their research, Lydia and her team created a detailed business plan for their subsidiary, which they named “IntegraTech.” They outlined their market, competition, sales and marketing strategy, and financial projections.
Step 3: Securing funding
As a successful medium-sized business, InnovaTech had enough profits to fund the initial setup of the subsidiary. However, Lydia knew that additional capital would provide a safety net and allow for more aggressive growth. So, they secured a business loan with favorable terms, leveraging InnovaTech’s strong financial position.
Step 4: Building the team
Lydia appointed one of her top project managers, Daniel, to head IntegraTech. Together, they recruited a team with a mix of software expertise and consulting skills. They also ensured there was strong communication between the InnovaTech and IntegraTech teams for seamless service delivery.
Step 5: Setting up operations
They set up an office space for IntegraTech, integrated within the InnovaTech building to facilitate collaboration. They also established standard procedures for managing consulting projects and created packages of services tailored to different client needs.
Step 6: Marketing and sales
IntegraTech was marketed to InnovaTech’s existing clients as a value-added service. They also reached out to other businesses that used similar software systems but weren’t necessarily InnovaTech clients. They highlighted their unique ability to provide personalized, in-depth consulting due to their intimate knowledge of the software.
IntegraTech was a success right from the start. Clients loved the convenience of having their software provider also manage the integration and consult on usage. Over time, IntegraTech grew beyond InnovaTech’s customer base, providing consulting services to a wide range of businesses.
This story is a great example of how a medium-sized business successfully leveraged its existing strengths and customer base to open a profitable subsidiary. By identifying a market need and strategically positioning their subsidiary to meet it, InnovaTech was able to enhance its overall business ecosystem.
Global 1080 Business Solutions understands what is needed to expand operations effectively and efficiently. Let’s have a chat! Find out more at www.global1080.com or contact us at [email protected].
