Importance of Diversification
March 5, 2008 by Jim Gordon
Filed under Business
You may be wondering why I used poorly-drawn cows for this example. Well, I stumbled upon this article from Farmers Weekly Interactive that talked about diversification among young entrepreneurial farmers:
“Successful diversification means diversification, not distraction. This can, at worst, seriously undermine the existing business.”
To pull this back to a standard business standpoint, diversification can collectively steer your business or it can negotiate turns. Though the only difference between those two points is semantics, I think that “negotiating turns” involves more planning and communication. If you pull like-minded people from the exact same background, you will always receive the same, predictable response – that is what I mean by collective steering. On the contrary, pulling together an engineer, a chemist, a school teacher, and a manager could really throw some fresh ideas into the mix.
How could diversifying your business help you accomplish goals? How could it hinder you?
