If large enterprises in Russia very precisely calculated the consequences of the “spring stress” of 2022, then the owners of medium-sized enterprises sighed only after they more or less realized what kind of world they are in now. The picture is polar: someone has a sharp growth, someone has a “valley of death” through which he must pass in order to survive. Someone is still missing and torn between two fires: he is trying to find a safe haven abroad and to direct his Russian business on trips or from afar.
However, the agility inherent in midsize businesses is starting to play its part. All business owners with an annual income of 1 to 10 billion rubles are actively looking for opportunities to invest in new free funds. What can you recommend to them? The main principle is to prioritize well-known niches, areas, tools that business people understand.
If the main business has survived, it makes sense to secure it. It is necessary to purchase potentially scarce materials, components, raw materials, equipment and at the same time be 2-3 times more frugal than usual. There were cases when, due to the lack of imported circuit boards and microchips that fit in a suitcase, an entire factory could stand for the production of electricity meters. Production areas the size of a shopping mall, several hundred employees – all on foot, due to a cubic meter of “sepulek” missing.
Experienced financiers often do not advise owners of medium-sized businesses to bury all their money “in development”, they offer alternative instruments – classic financial instruments on the stock market, for example. However, it is now simple self-sufficiency that will provide much more insurance against financial risks than traditional deposits.
If all purchases are made with skill, with a deep understanding of the needs of your production and industry, you should not be afraid to overstock the warehouse … If a rainy day comes, you can always resell materials, parts, equipment. demand for a neighbor in the industry. Well stocked warehouses are now easily monetized.
You can also get abandoned businesses.
Unfortunately, many midsize businesses have been abandoned and weakened amid the tumultuous events of 2022. Its owner fled Russia, either losing interest in or control over Russian assets. It’s time for industry peers to buy such assets at a hefty discount.
This is a very good reason, because, as a rule, we are not talking about raider captures of a naive competitor, but about rescuing people – highly qualified specialists who remain in such abandoned enterprises. Indeed, the redistribution of properties and assets among major brands is already approaching the final stage (for example, the transformation of McDonald’s into the brilliantly executed Tasty – that’s all, etc.) scale businesses are just getting started.
Status from the app. The Russian company produced decorative cosmetics. Production orders were placed all over the world, and it was produced in Russia under their own brand. Against the background of the events of 2022, the owner had a nervous breakdown, completely lost interest in his business. He gave the order to sell all products at cost, to cash everything out, and went to California. A team of unique experts turned out to be derelict. But the owners from the relevant industry became interested – they gave the abandoned team the money in circulation, a small share in the joint business. Now they have the opportunity to enter the market that they have been planning to enter for a long time without hitting all the bumps for many years.
Another option is to purchase commercial real estate.
Owners of medium-sized businesses have always been more receptive to investments that can be felt: machinery, equipment, components, goods, etc.
A new window of opportunity has opened for real estate investment. Discounts from developers, discounts from resellers. Many companies have left Russia or have optimized their rental space. The release of blank payments inevitably leads to large discounts. For example, a big deal for the sale of MEGA malls and IKEA retail space is at a discount of more than 50-70% off the fair price. The same thing happens with small transactions: buildings for offices, shops or warehouses.
Of course, extreme caution should be exercised in this area and the seller’s assurances should not be followed. It can easily turn out that the ideal property for a store on the ground floor of a residential building is either scheduled to be demolished as part of renovation in a few years or has no real chance to accept a separate entry.
The rule of thumb for investing in times of change is less emotion, more common sense. Consistency, stamina and financial balance will inevitably lead to success.
The author expresses his personal opinion, which may not coincide with the editors’ position.