Diversification Can Ensure Survival

Rhonda Abrams at Gannett News Service:

It’s the nature of entrepreneurship to take risks. But by being strategically diversified, I mitigate some of the risks.

How can you reduce your exposure to one catastrophic business occurrence?

1. Never get too dependent on one customer.

2. Never get too dependent on one supplier.

3. Never get too dependent on one income line.

4. Never get too dependent on one distribution channel.

Careful diversification is a strategy for business survival. Certainly, you need to build one business at a time and stay focused, but when you don’t put all your eggs in one basket, you’re better able to survive the unexpected, even the truly tragic, events your business may face.

Photo by tednmiki.

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