So, there are three typical situations that Project initiators face:
Project initiator has a business idea, which seems commercially attractive, yet the initiator lacks solid informational grounds to make a final investment decision.
Project initiator possesses some inefficiently used resource (e.g. a stalled production plant, land lot, some form of unutilized energy generated at an existing production facility, certain know-how or patented technology, etc.) and would like to make the best use of it, yet the Initiator lacks solid informational grounds to make further key (investment or operational) business decisions.
A variation of the 1st and 2nd situations that we sometimes come across: a project initiator has already partially invested into a project, yet decided to take a pause at some moment and think again before investing the rest of the money.
We believe that picking a good business/project to invest in at any given time carries more weight in the ultimate investment success than any other factor or plan that may be added later. That is why it is difficult to overestimate the importance of collecting and analyzing enough business-related information and making the right decision early. To put it differently, project evaluation (or feasibility study) usually costs a tiny fraction of the total cost of a potential project, but may save the total investment from being wasted.
In the 1st situation,
as described above, we typically:
- gauge the study results against the Client’s capabilities An overall good business idea sometimes might not bode well for a particular Investor, because, for example, the Investor outright lacks the competencies required to develop the idea successfully. in order to draw a recommendation: “Go ahead with further business planning and implementation on this idea!” or “Do not pursue developing this business idea!” (or some variations of the two with extra conditions).
While “Do not go ahead with it!” usually means no more business for us in helping develop a given idea into a company, we produce this recommendation in over 30% of the cases we work on. The Clients whom we helped not to lose their capital usually return to us with new business.
In the 2nd situation,
as described above, we:
- generate business ideas (our regular practice, which is strengthened by our rich experience in various industries!),
- in close cooperation with the Client, pre-select the most promising ones (usually 2 or 3) for further evaluation,
- conduct investment feasibility studyIf the inefficiently used resource is a land lot, this stage is named “best-use analysis and concept development”; we regularly perform this type of work in various regions. of the pre-selected ideas and then
- gauge the study results against the Client’s capabilities in order to draw a recommendation: “Go ahead with further business-developing of a certain idea!” or “Let’s look for other, better ideas!”
In contrast to the 1st situation when we may produce a negative (“Do not do it!”) recommendation, we work through the 2nd situation until we locate a commercially attractive business idea for a particular Client.
Rain partners have been intensely accumulating business expertise in new ventures prior to and after the company founding in 2002. By now our expertise in this challenging area of strategy advisory services is hard to match.
Market-entry strategies for foreign companies wishing to enter the Ukrainian market
In its essence there is not much difference between this activity of ours and what it requires of us in terms of execution, as compared to the 1st and 2nd typical situations described in this section. Perhaps the main differences are in the fact that the Client here already knows its subject business very well, has experience in entering other markets, but wants to take the right steps in a new market from the very beginning. Sometimes within this activity we also help locate fitting trading partners for the Client.