Focussing on the core business is a necessary step for many small and medium-sized companies in order to consolidate business activities, if financial recources and executive capacity are running short. Thus, many promising and sound products and services from the past are abandoned, which is a huge pitty considering the many efforts and development costs as well as motivation of staff which all seem to have been futile in such circumstances.
Dr. Franz Beeler, graduated physicist and expert in the field of technology, innovation and venture management for small and medium-sized companies, recommends to outsource such strong products into so-called spin-off companies (Spin-off ⇒ Wikipedia). In his opinion this would entail two major advantages: On the one hand, this procedure ensures transparancy required by creditors given that financial recources are indeed invested into the new product or service in question. On the other hand, the outsourcing provides protection against a possible failure of the spin-off company to its parent company.
In a detailed article on the KMU Innovation internet portal Dr. Beeler gives valuable advice on this subject to small and medium-sized companies. He informs on how market potential and business plan influence the attitude of possible investors, how to find suitable partners, co-operate with universities and capitalise on franchise concepts (⇒ Wikipedia).