Diversify or Die…

I was just reading about how the writer’s strike in Hollywood has rippling effects which reach to small businesses on both coasts.

In Karen E. Klein’s interview in Business Week, Consultant Mark Deo shares in detail how a major strike, like this one actually kills more small businesses than helps them grow.

What businesses will be effected? Caterers, couriers, document management, print shops, make up artists, hairstylists and more.

I don’t know about you, but I hadn’t thought about that…

But Deo does give some key advice at the end of this piece:

Well, it’s a little late for many of them, but they’d better diversify. If you’re supplying flowers to the movie industry and proud that you’ve got a big contract with Sony, you’d better look at developing contacts with hotels and restaurants. If you’re a firm that supplies extras to sets, think about supplying temporary labor for companies. Prop houses can look at supplying parties and working with event planners. The larger lesson, for all small business, is that it’s absolutely critical you don’t put all your eggs in one basket. A healthy client mix is really important because you never know what’s going to happen.

Good point. Back in the days when I worked for a PR firm, my boss only focused on one client. We had the entire account for every product line, but when the company was sold, we were all out of jobs. If he had only thought ahead.

Look at your client/customer list. If you have only a couple of major ones, it’s time to think how you can market yourself differently to reach new targets.