Non Core Diversification – Worth A Second Look
We often come across big businesses explaining that they have decided to sell off a significant percentage of their commercial assets so that their managers can focus on their core businesses. Do you ever wonder how these enterprises setup core and non core businesses? When do they decide to sell the same? What factors do they consider when taking such a decision?
A small business should consider diversifying into non core business to secure that extra safety and stability. Do you happen to have property at a very prime location? If yes, why don’t you create a private company and sell the property to the company? You can then run the company and offer commercial property management services. You can even present yourself as an infrastructure company that is in the business of developing land and earning a profit out of the same.
The fact that you will be dealing with your own property means there is very little risk. However, it will look very good on your resume when you point out that you have multiple businesses and operate on a non core and core basis. There may come a time when you may have to sell your business assets to stay afloat.
When that happens, you have the option of disposing of the property that you had sold the company for a sizable profit. The idea is to keep such options open at all times so that all complications and contingencies can be taken care of without any difficulty by getting rid of the non core assets.
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