Got this photo from www.businesspundit.com
Hmm..I need to hear from you guys regarding this illustration. Is diversifying really an advantage for your business? What are the problems that your business may encounter with diversification?
Are you for diversification or not?
Let’s discuss.
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{ 22 comments }
Well, let’s take blogging for example. Would you go for mixed bag or have your niche?
.-= JeD´s last blog ..Is Diversifying An Advantage For Your Business? =-.
I can see 2 things here, it’s diverse target markets vs specialization. What do you think?
It’s rather an open question!
Diversification in business depends on too many factors to just give a yes or no answer. Give us a specific and detailed scenario and I’ll give you an evaluation!
.-= Chinaren´s last blog ..Gloom Rising. =-.
@Chinaren: Hey thanks! Let’s just base it on the illustration. It’s a farm who offers auto repair, financial consulting and lite puff pastries. I know the illustration was intended for humor’s sake, but it also happens in reality that some businesses are too diverse.
Do these kind of diversification on your business healthy?
Our business now is in transportation as well as in automotive. It’s pretty diverse but it somehow is connected to each other..correct? In my personal point of view, this kind of diversification is okay.
What do you think?
Hi Jed,
They both have their pros and cons, so you have to consider the type of business you have and the goals you have set for yourself. Writing the facts on paper would help a lot in clarifying your dilemma.
Diversification would make you a Jack of all trades but a master of none, but having one specialization would eventually make you “Il Duce” in that particular business.
As for blogs, I have more than 8 blogs with different categories and two mixed-bag blogs, and I can say that I can’t discard any of them.
I know I may not have enlightened you much but if you’re cutting on cost, diversifying is your best option , and if you aim for excellence – and you have ample, financial resources – then go for specialization.
.-= Jena Isle´s last blog ..Plotdog’s WOOF Results for June 12, 2009 =-.
yes. I guess so. cuz people always want something new. Like in my small business polvoron. I sold the same plain flavor for 5 years, but my “suki” wanted something new. They still want the polvoron, so I added some flavors like cookies and cream, peanut butter, and the best seller, choco dip.
They also wanted me to make yema and other pastries. But I wanted to stick with the polvoron first. LOL
I think it’s the same as blogging. Whatever topic you have, you will soon have to expand so your readers will not get bored, yet you’re still on that specific issue. What you think?
.-= fedhz´s last blog ..Spunky got Fleas! =-.
And I think your business are related. Do you sell auto parts? Then that’s good, i mean, you already have idea when your “bus” gets f*ckd up. You already have tools and equipments.
I think it’s the same as having a computer shop (for rental) and a computer store that sells the peripherals.. Like ACE hardware. Everything is there. hehehe
.-= fedhz´s last blog ..Spunky got Fleas! =-.
@Jena Isle: Wow Jena that’s indeed very insightful. Hmm..so are you saying it is a matter of choice between specialization and being a jack of all trades?
I’m just quite intrigued about the illustration, whether being jack of all trades can solve financial problem in the long run. OR just specialize in what you do best.
Wow! 8 blogs?? how do you manage those?? I just have 1 blog, 1 tumblelog, 1 social bookmarking, 1 twitter, 1 facebook, and others are just secondary, and still I’m having trouble managing those.
You are welcome to post in this comment those 8 blogs you have. 
@fedhz: Wow I never knew that you had a polvoron business! Yum Yum! I love polvoron!
Hmm..nice point there fedhz. Diversify and offer something new, I like that.
So this is one strong point to diversify. But can you see any negatives in diversifying?
@fedhz: No we’re not selling autoparts. We ventured to new business, to car dealership. ^^ So we are now in two industries: transportation and automotive.
But I think the system is totally different. Though there’s a “little” relation between them.
I can’t handle them both.
Yes, Jed, if you have the means and the finances, then diversify, if not – then specialize. Don’t spread yourself too thinly/thin. If your only problem in diversifying is you, yourself can’t do both – then hire trusted personnel and supervise both of them closely. You don’t have to be the salesman, cashier, gofer , etc. – be the supervisor.
Yup, I agree with Jena. ^^v
Yeah, I haven’t told you about the polvoron. I have yet. haha. I wanted to give samples to everybody, but I don’t have the time to make one. Maybe I’ll give them as raffle or something? hahaha.
.-= fedhz´s last blog ..Spunky got Fleas! =-.
@Jena Isle: These are very good information Jena, may I ask what do you do for a living? Seems like you really know your stuff. Thanks for your inputs, we absolutely learned a lot!
Cheers!
@fedhz: LOL fedhz! Yeye! Balitaan mo kami about your special polvoron huh?? ;P
That’s top secret Jed. lol … but I know you’ll eventually come to learn about it. Good luck with the business.
.-= Jena Isle´s last blog ..Plotdog’s WOOF Results for June 12, 2009 =-.
@Jena Isle: Whoa! Top secret?! *sob*
In any case, I respect that. God bless on your errands! Thanks so much! ^^v
i think it is a battle between the saying “don’t put all your eggs in one basket” against those who says that diversifying could lead a business to lose focus. but if we will look at it, there are business that fared well in diversification as what SMC is doing right now…but there are also business that had gone bad when it diversified losing much of its stock value.
i think it is a matter of principle to businessmen that each new venture is a calculated gamble and not only sheer gamble. if you haven’t done well enough with your first venture it could be questionable for you to try another…
in the end, this is a complex matter but not necessarily complicated…it will always be basically having the goal to answer the question that, will i profit on diversifying or not? business is making money.
.-= elmot´s last blog ..Who is the Emerging Influential Blogger? Poof! =-.
Hi Jed,
A lot of educated and wise comments here. I can only give you an example.
As a doctor, it would be great to be able to cure everyone, but, there are several, make that, a lot of diseases that would need a certain level of expertise. So, you can either be the doctor who knows about a lot of diseases, but would need to refer once the patient requires a specialist, or you can be the specialist who gets recommendations from the general practitioners.
Who would you be is entirely up to you.
Z
.-= Zorlone´s last blog ..Top Ten Emerging Influential Bloggers 2009 =-.
@elmot: Hey Thanks! Perhaps that summed it all huh?
Q: Diversify or not?
A: Yes, if it will make you more money. No if didn’t.
after my long explanation, actually, all i wanted to say is, everything here is to make profit… im quite a verbose person eh eheheh!
.-= elmot´s last blog ..I Can’t Understand Why Politicians Say the Darndest Things? =-.
@Zorlone: Hmm..should I consider this comment leaning towards specialization rather than diversifying Z?
I love the fact that we all have a choice of whom we want to be. We just have to make and stand for our choice.
Very nice Z!
@elmot: Well, I think being verbose is one advantage for blogger.
Do you agree?
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