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What is Business Diversification and Why it is So Important

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Few years back could you imagine big giants like Reliance selling vegetables or shoes? Now that has become a reality. You may argue that it is a retail business and they are ‘diversifying’. That is exactly the point here. Diversify your business or have various different sources of income from the same business.

Yes that is the correct word, diversifying. It is important to look for opportunities in all businesses. Be it small, be it large.  From a single premise or team if you can manage different businesses, it gives you better earning opportunities.

Now consider a xerox or copier shop where thousands of pages are copied daily. customers need to come and wait till their stuff is ready. Suppose you have an option of cool drinks,  don’t you think that many of them would like to avail that just to kill time.

Similarly, say you have an ice-cream parlor. People come to hagout and have ice cream. Why not have the options of pastries also? They go togather quite nicely.

If you have a book shop and books are selling hot, why not have an option of selling CD and DVD and school bags also?

As one of the core business of ours, we used to guide students in their projects and assignments. Some times the number of students used to be more than 3.000 in a month and they needed various documents and project modules. So we started offering cd s at a price lower than mrp. In year 2009, we sold 1000 usd of cd with about 40% profit. This was not in our business agenda but helped us to cover our entire year,s electricity bill.

These are just some of the simple examples of how you can utilize your existing resources like the premise to earn a bit extra.

Business is all about opportunities. You need to trap an opportunity and keep pushing for that.

Many argues that more diversification needs more time and sometimes it is difficult to dedicate that time when your main business is moving smooth.

But with technology changing ever so fast, you can never bank onto a single thing. Many hot product of last year go forgotten this year.

With many opportunities, people are always looking for change. You never know from where that next change is coming and how that change is coming. A sudden change of paradigm shifts leads to psychological and economic issues.

So take your time to think and to expand and be happy for your decision.

That is the concept that you need to understand. If you are in a business, you know customers needs and you also know your edge . Rather than questioning if it look nice to offer other services, just jump on. Help your business to grow and earn from your existing customers.

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