When and How to Diversify
How to progress in order to thrive.
Success as an entrepreneur often depends on the ability to come up with the next great idea. In a world that is constantly changing whether it be with technology, how we engage one another socially or the trend of economic growth, we have to be able to find ways to stay relevant and at the top of our game. There is just one little issue. This goes against our natural desire to remain in a place of comfort where we feel like we are the expert in our niche. We all know that we need to do what it takes to not go stale in an evolving market, so let’s explore some companies who did what is required to reinvent themselves.
One of the integral talents of a good business owner is the ability to critically evaluate their societal climate with a keen eye. The well-known computer company IBM was able to successfully do this when they saw their competition coming in the computer-making industry. They were pioneers when it came to making PCs, but they knew their competition was rising and they needed to diversify. By expanding their services, they were able to not only stay relevant, but thrive in a new niche. Another company, Nintendo, was also able to do something similar when they saw the need to evolve to match the trends in technology. They could have felt comfortable in their playing card industry, but they knew that to stay a leading force, they would have to up their game. Well, their work was not in vain; you probably have heard of them before now.
Remember the good ole day when you had a penpal to write letters to? Maybe, maybe not. You probably have not written a letter to anyone lately, but you probably have texted or emailed a coworker within the last few hours. Just like our technology, our norms for communicating with one another change. The way we notify the press, the way we form relationships with colleagues, and the way we communicate with our customers is constantly evolving. We tend to rely on technology-based forms of communication more and more to run our businesses, and that is ok. Don’t associate progression with negativity when it comes to your business. If your clientele communicates with Instagram, make your presence known on that platform. If your customers prefer the ease of using GroupMe as opposed to forwarding an email, you need to acclimate yourself. Be sure that your business does not stagnate due to your inability to progress.
Along with technology and communication, you have to evaluate the economic trends within your field. For example, if your business deals with high-risk markets, you have to find ways to diversify to survive. The rural areas of the state of Oklahoma know this very well. When the oil business is good, the state economy thrives, however when the price of oil drops, people lose jobs and entire towns feel the consequences. Even the companies that indirectly work in this field have to diversity to ensure their survival. Your grandmother may have told you not to “put all your eggs in one basket.” Well, grandma was right, you simply must diversify to survive in a changing environment.
You can learn strategies to diversify your business and so much more this June 7-9 in Phoenix, Arizona at our Business Accelerator. Sign up today!