Externalization

Article "Externalization - a tool of modern entrepreneurship"

*The word “externalization” has Latin roots, and is literally translated as “operating with the external.” Outwardly, it resembles the verb: “immerse external resources into internal ones.” However, what happens in business is very similar to this metaphor.* *Externalization is especially useful for companies that want to quickly scale their business or increase profits through additional resources.* In this material we will look at methods and techniques, as well as the advantages of this approach, its distinctive features and application in practice.

Externalizing is the process by which a company seeks or creates additional external value or resources. That is, it expands the capabilities of the organization’s internal resources beyond those in their hands. The fact is that sometimes it is not the resources that it already possesses that can expand a company's capabilities. For example, you invested 90% of your funds in production facilities, equipment, warehouse, hired employees to expand the team - but the time has come to sell the product, because the current economic situation has changed and then you realize that you need to hire even more employees - there is no way to re-profile There is also enough power and goods. What to do? And then a solution appears - to introduce a system of the external side in order to find new means and resources to “open second doors”, because someone probably knows where to get money, maybe he has something extra that he doesn’t even know about knows it's a resource for someone else. Often partners care too much about their source of income, but are simply afraid to take risks by giving information to outsiders. Every gopher considers his “hole” to be the one through which he builds his business. But in fact, there are passages through which you need to look ten times deeper! Externalists master the technologies of searching for sources, using mechanisms, and creating new values. Such source people are much more expensive than those internal ones who are on your territory or who know about you. Sometimes you have to pay a considerable price for foreign markets, but the benefits from them