Secure your organization through diversification

As a business owner you need to prepare your company for the future.  Of course it’s important to keep up to date and understand the economy and how its changes will affect your industry, but that’s not the only factor you should be concentrating on to safeguard your firm’s future…

Even if you are in tune with stock market cycles or economic predictions and forecasting, deciphering the data can be complicated and not your only option when it comes to growth…

• In comes the trend of Hyperspecialization of your products or services… an article in Harvard Business Review, “The Age of Hyperspecialization”, states that as work becomes more knowledge-based and as communication technology improves, it is easier to split work into smaller and smaller pieces. The article talks about a site where companies present development work that needs to be done. The work is then bid on and completed by hyperspecialists all over the world.  These individuals do not work together as a team. Rather they have very specific products to produce.
• Diversification is another form of growth strategy. The purpose of diversification is to allow the company to enter lines of business that are different from current operations.  A geographical diversification can reduce the overall risk and improve returns within your company.

This isn’t something your business can do overnight, but as you develop long-term plans, consider how it can make your business stronger.  You can diversify operations, suppliers and even your customers.   Think about different geographic markets, demographics, even how your product or service might be used differently.  How could you promote your product differently to appeal to different consumers?

• Of course staying ahead of the demographic trends is very important. As a business owner, your company will be more successful when you detect any economic changes on the horizon if you keep up on business trends, especially in your industry.  Jump ahead of the curve, by supporting developing technologies that are continually changing the way businesses succeed, people work, and customers connect.

In the hustle and bustle of daily life, it is often difficult to find time to step back and look at the bigger picture and remain competitive and viable in the long run.

Keep up-to-date with business developments, especially in your industry, to identify any changes on the horizon.  Move ahead, by welcoming developing technologies that are continually changing the way businesses thrive, people work, and customers engage in your industry.

Staying on top of advancing business trends will help your organization meet the challenging and changing needs to be a strong and successful organization in the years to come.

 

Has your company tried Hyperspecialization or diversification yet?

[themecolor]Dave Baney is the founder and CEO of 55 Questions, LLC.  We work with successful top executives with a driving ambition to crush their competition.  We help CEOs and Entrepreneurs improve alignment, communication and accountability throughout their organization.[/themecolor] www.55Questions.com

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