Diversification for Dummies

10 May 2013, by A. Cedilla

 Who will diversification help?

  • Anyone trying to run a business and grow their customer base.
  • Anyone who is juggling responsibilities with marketing, billing, customer support and product services with not enough time to attend to all of them properly, and wants to focus on only doing a few things–key things–effectively.
  • People who don’t want to waste their energy or their time on doing things that don’t work, and especially want to make their time work for them.

What will diversification mean for you?
It means splitting up your focus among a few select methods to be more mobile. It means casting a wider net to get more of what you want and filter out what you don’t want. It can mean outsourcing certain things to give you more time to do what you’re good at.

You establish more support anchors through diversification, and when one method misses or no longer helps, you can get a new one to replace it while the others will help carry the load.

Wise diversification in a nutshell: Do less stuff to be more successful? Yes, just make sure the stuff you’re actually doing is actually working for you.

 

To illustrate, the difference between hitting the bulls-eye and scatter-shot effort is practice and focus. You don’t want to waste your efforts, you practice and learn until you can make sure that you hit what you’re aiming for, instead of firing and hoping to nick something. That’s one.

On the internet, making a splash is a way of getting attention. And while it’s great for getting the spotlight focused on you for the moment,if you don’t do anything with it, it’s a dead end.
Making a splash is only one way of getting attention. You also have to keep that attention, and you can do that through other means. If you only focus on getting attention and publicity but not trading on it, earning from it or connecting with it, all your efforts go down a bottomless hole with nothing to show for them. You need reliable results.

That’s two.
The reason the analogy about ‘not putting all your eggs in one basket’ works is because it’s perfect. If you do put all your eggs in one basket and you drop the damn basket, you have nothing left. That’s why you need to diversify and be smart about it. Remember focus and reliable results? Focused efforts lead to desirable results.

Don’t do everything –who has time to do everything? — just restrict your efforts to a few activities so you can handle them and watch closely to see if they work for your. If one doesn’t work out, you can switch it out for another avenue.

  • Limiting yourself to tried and true methods can really help you better manage your attention and your energy.
  • Having too many things to juggle ups the chances of one or more of of them slipping off to the side. Frustration, confusion, and self-doubt pile up, and you are weakened and discouraged when you face the dismal results.
  • You only have this much time and energy in a day– don’t spend it on stuff you can’t use.

The strength in diversification is focus and consistency. Too much scatters your attention, just enough gives you ease and a sense of control.

One Good Reason Why.
If you have only one big customer, what happens to you if he decides to take his business elsewhere? Boom. One big egg gone, one lonely basket, one panicked business owner. How do you think a lawyer or a doctor will last with only one client on his roster?

In the same way, if one marketing ploy doesn’t work or slowly stops working, you have others to fall back on. You try things out, you look at the ones which gives a better payoff for your efforts, and you focus on those methods, dropping or outsourcing the others.

Diversity helps you ride out the slow season and dead times. You wouldn’t invest all your money in one company’s stock, or bet it all on one hand, you shouldn’t restrict yourself to only one thing. You don’t know what the future holds, so you have to have a set of skills and fallback and avenues to use. A set, as in more than two or three things.

Another Solid Reason Why
It makes better use of your time, and time isn’t a renewable resource. Diversifying with limits makes you focus better. It helps you get things done. It stops you from the paralysis of too many choices where you try everything,and master nothing. You can ask for help, hire jobs out, outsource, just as long as you know that you’re doing the best at what you’re best at.

Yet Another Good Reason Why

You have a better change of acquiring targets through different methods. Not all people learn the same way, or use the same avenues to find out how to get what they need.

  • There are people who ask their friends, there are those who research like crazy to get the best quality intersect with the best price point, there are people who go by reviews while others want to find out for themselves what’s up and what’s good….
  • Then there are those who want it now and go out to get it, and people who don’t read every email they get, and people who compulsively do read but don’t remember. Then there are the bargain hunters and the coupon collectors…

With only one way to get to your prospects, what will you do if only a fraction of them actually pay attention? You get their attention in other ways. You get in touch with your market by using different ways expands the reach of your net.

How To Start Smart?
Look at your time (time-management) and how you learn best and fastest (mastery). Pick 3 to 6 methods: a mix of top three absolutes (your Old Faithfuls) and 3 you’re new to. Just bear in mind that the methods you choose has to be a fit for you.

If you’re not just that social a person and face to face interactions (like seminars or workshops, and public speaking engagements) are terrifying and exhausting for you, restricting yourself to a virtual presence may give you the distance you need to be able to do your own work and still keep in touch with your market base, while keeping to your tolerable minimum of meetings in small groups.

The gold standard now is having your own website. A solidly planned site, with all your products and services available for viewing. With clear, concise information, and responsive to customer inquiries – your market can decide quickly based on the information you present and how professionally you respond.

Articles and newsletters also help to establish a knowledge base you can share with your customers, newbies and veterans alike. Whatever methods you choose, ensure that you can commit to proficiency and being comfortable in using them — better three or four things you keep at than ten fancy methods you let die off. Pick methods you can manage smoothly, consistently and sustainably. Inch by inch, it’s a cinch, mile by mile would take a while.

If you liked this article, you might like: Diversification For the Smart Entrepreneur.

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