Traveling through time and space.

Chapter 206 Family Businesses’ Cross-Industry Investment Strategy Decisions

After seeing the remarkable success of Taoist culture in elderly care, Mu Yang realized that family businesses couldn't rest on their laurels; they had to adapt to the times and seek new opportunities for growth. Diversification was imperative for family businesses, and cross-industry investment was a key path to achieving this goal. With a sense of mission and responsibility for the future of his family business, Mu Yang embarked on this significant cross-industry investment strategy.

That day, Mu Yang arrived early at the family business's investment decision-making meeting room. The large conference table was spotlessly clean, surrounded by comfortable chairs. A chart depicting the family business's development history and key business philosophy slogans hung on the wall. Family members and members of the investment team gradually arrived, their expressions a mixture of excitement and nervousness. After all, this cross-industry investment decision dictated the future of the family business.

"Ladies and gentlemen, we are gathered here today to discuss the cross-industry investment strategy that is crucial for family businesses. Currently, our traditional manufacturing industry is facing fierce market competition and increasing cost pressures. It is imperative to find new profit growth points and achieve diversified development." Mu Yang's voice echoed in the conference room, steady and firm, his eyes revealing his worries and expectations for the future of the family business.

Uncle Li, a family elder, frowned slightly and spoke first. "Muyang, I understand the need for diversification, but cross-industry investment is too risky. We've accumulated so many years of experience in traditional manufacturing. Can we rush into a completely new field? I'm worried about losing all the hard-earned wealth we've built." Uncle Li's words revealed his concern for the family's wealth, a concern shared by many family members. He unconsciously clenched his hands, his face filled with solemnity.

Xiao Zhang, the head of the investment team, quickly explained, "Uncle Li, your concerns are very reasonable. So we have done a lot of preparatory work in the early stage. After studying the market trends, we found that emerging fields such as green energy, big health, and cultural and creative industries have huge development potential. Take green energy as an example. As the world pays more and more attention to environmental protection, the market demand for clean energy such as solar energy and wind energy continues to grow. According to authoritative data, the size of the green energy market will increase at a rate of 20% per year in the next five years. If we can make a layout in this field, we can expect to get rich returns in the future." As Xiao Zhang spoke, he displayed relevant data and charts through the projector. The bar charts, line charts, etc. intuitively presented the development trends of various industries, trying to convince everyone with professional analysis.

However, another family member, Aunt Wang, expressed a different opinion: "Having said that, these emerging fields are too unfamiliar to us. We lack the relevant technology and talents. How can we ensure our foothold in the fierce competition? I think we should still consider it carefully and not blindly follow the trend. Take the big health industry as an example. It involves complex medical knowledge and strict regulatory standards. If we rush in, we may encounter obstacles everywhere." Aunt Wang frowned slightly, her eyes full of caution.

Mu Yang nodded and said, "Aunt Wang is right. So we will entrust a professional industry research institute to conduct in-depth research to provide a comprehensive basis for investment decisions. Only by fully understanding the market size, competitive landscape, development prospects, and policy environment of the target industry can we make wise decisions."

After the meeting, Mu Yang led the investment team to a well-known industry research institute. The office of this institute was filled with various books, reports and data models. Researchers were busy working at their respective workstations, and the sound of keyboard tapping and low discussions intertwined.

"Professor Liu, our family business hopes to get your professional guidance in cross-industry investment. This time we are mainly focusing on the fields of green energy, big health and cultural creativity." Mu Yang said sincerely to Professor Liu, an expert from an industry research institute, his eyes full of expectation.

Professor Liu pushed his glasses and said, "These fields all have great potential, but each has its own unique characteristics. The green energy industry is heavily influenced by policy, and while it has recently received strong support from the government, the market prospects are broad, but it requires large initial investments and rapid technological updates. For example, solar cell technology is constantly innovating, with new high-efficiency materials emerging every few years. The health industry is closely related to people's lives, and demand is steadily growing, but competition is also fierce, with extremely high requirements for product and service quality. The cultural and creative industry is characterized by innovation and high added value, but market demand is relatively fragmented, requiring precise understanding of consumer preferences. For example, cultural and creative products that were extremely popular a few years ago may no longer be popular after a year."

After listening to Professor Liu's detailed analysis, Mu Yang and the investment team members benefited greatly. However, during the discussion, the differences in research cultures among different industry research institutions gradually became apparent, and their impact on investment decision-making became apparent. Investment team member Xiao Li raised the question, "Professor Liu, we've previously consulted other research institutions, and their perspectives on the development prospects and risk assessments of these industries differ slightly from yours. This has left us somewhat perplexed, and we're unsure how to make our decision. One institution believes that the cultural and creative industries will become a dominant sector within the next decade, while your analysis is relatively conservative."

Professor Liu patiently explained, "Different research institutions may use different research methods and data sources, so their conclusions may vary. Some institutions may focus more on short-term market trends and ignore long-term stability. When referring to these research results, you should comprehensively consider the authority of each institution, the scientific nature of the research methods, and the reliability of the data. You cannot make decisions based solely on the views of a single institution. Our institution, for example, integrates multiple factors into its analysis, including macroeconomic data, policy trends, and industry innovation trends."

After thorough research and analysis, the family business initially identified several potential investment targets. Mu Yang led the team to a green energy company. Located in an industrial park, the facility boasted towering solar panels and advanced wind turbines. Workers, dressed in uniform and focused beneath their hard hats, toiled away at their posts.

"Mr. Zhang, I'm very happy to visit your company. Our family business is very interested in the field of green energy and hopes to gain a deeper understanding of your company's operating conditions and core competitiveness." Mu Yang said to Mr. Zhang, the representative of the potential investment target company, with a smile, his eyes revealing friendliness and caution.

Mr. Zhang enthusiastically introduced, "Our company specializes in the research, development, production, and sales of solar and wind energy. We possess independently developed high-efficiency solar cell technology, resulting in industry-leading power generation efficiency. Furthermore, our wind turbines offer high stability and low maintenance costs. In terms of the market, we have established long-term partnerships with several large energy companies, and we have a steady flow of orders. Last year, our sales reached 5 million yuan, and we maintain a 30% annual growth rate."

During the visit, Mu Yang and the investment team carefully observed the company's production processes, equipment conditions, and employee work status. However, during the investment negotiations, disputes with potential investment targets over equity ratios, control rights, and profit distribution also arose.

During the business negotiation, Xiao Wang, a member of the investment team, said, "We hope to obtain a certain equity ratio after the investment so that we can have a certain say in the company's development strategy and operational decisions. We believe that the capital injection and resource integration of the family business will help your company expand its market faster."

Mr. Zhang said, "Our company is currently developing well, and we don't want outside investors to interfere too much in our internal affairs. We can offer a certain equity ratio, but control must remain in the hands of our existing team. Our team has a deep understanding of the industry, and the management model and market channels we have built over the years are the key to the company's success."

The two sides engaged in a heated discussion about issues such as equity ratio and control, and the atmosphere became tense for a while. Seeing this, Mu Yang quickly said, "Everyone, calm down. Our goal is to achieve a win-win situation for both parties. We can find a balance between equity ratio and control that can both guarantee the operational autonomy of your company's existing team and allow our family business to receive a reasonable return and a certain degree of participation after the investment. For example, we can set up a special equity structure that gives us a certain voting right in major decisions, but the day-to-day operations will still be led by your company's team."

After several rounds of arduous negotiations, the two sides finally reached a preliminary consensus on equity ratios, control rights, and profit distribution. However, upon returning to the family business, disagreements arose among family members regarding the direction and amount of cross-industry investment.

Uncle Zhao, a family member, believes that more funds should be invested in green energy companies. He said, "Green energy is the future development trend. This company has excellent technology and market share. We should increase investment and strive to gain a foothold in this field. I think we can invest 30% of the family business's working capital. This will quickly expand our influence in this field."

Aunt Sun, however, believes the big health industry has greater potential. She countered, "The big health industry is closely connected to people's lives, and the market demand is stable. We can invest in a company that develops distinctive health products. In the long run, the returns will definitely be good. I suggest focusing on the big health industry and starting with a small investment in the green energy sector."

Mu Yang listened patiently to everyone's opinions and said, "Everyone's opinions have some truth to them. We need to consider various factors comprehensively, including industry prospects, corporate strength, investment risks, etc. We can't make decisions based solely on personal preferences. We can organize experts to conduct research again and formulate a reasonable investment plan based on the actual situation of the family business. We must balance risks and benefits to ensure the stable development of the family business."

After repeated considerations, the family business finally developed a prudent and reasonable investment plan. At the investment decision-making meeting, Mu Yang stated firmly, "Our family business is about to embark on a journey of cross-industry investment. While the road ahead is filled with challenges, I believe that as long as we work together and make prudent decisions, we will be able to achieve diversified development of the family business and create even greater success for the family's future. This is not only about pursuing economic benefits, but also about inheriting the family's honor and responsibility."

In the days to come, Mu Yang will lead the family business to bravely meet the challenges brought by cross-industry investment and strive to achieve the strategic transformation and sustainable development of the family business.