If you are an established business owner, expanding your business portfolio is a must. Historically, industry leaders have maintained longevity by imploring business diversifying strategies that allow them to stay ahead of the curve, and solidify their top spot. Of course, sometimes this involves risks, but the alternative is to remain stagnant, while competitors lap you in the areas of growth and business development. Don’t take the alternative route. Follow these tips instead:
In today’s tech society, trends come and go quickly, so staying relevant takes effort. An avenue to maintaining relevance is to be on the lookout for opportunities to expand your business towards different markets. For example, Uber Investor announced its majority acquisition of Cornershop, an online grocery supplier, with the deal set to close in early 2020 pending regulatory consent. This exhibits Uber’s ability to collaborate with other similar companies while simultaneously diversifying its business portfolio.
Securing the top spot for years to come requires expansion of some sort. Reinventing your company via diversifying your products or services is an optimal way to ensure your idea lasts for generations. Imagine if Apple would have settled with their first product, who knows if the company would have ever reached $53.8 billion in revenue for its third-quarter financials report, revealed in an Apple press release.
Become Disaster Proof
If and when the economy takes a downward spiral, you want to make sure your company is disaster-proof, by generating multiple streams of income. This can be done by following the best practices of diversifying your business. In August of this year, UberTechnologies Inc. released its second quarter 2019 results and revealed a $5.2 billion loss. Months later, they’ve announced an entirely new stream of income, Cornershop.
“Whether it’s getting a ride, ordering food from your favorite restaurant, or soon, getting groceries delivered, we want Uber to be the operating system for your everyday life,” CEO Dara Khosrowshahi said in a press release.
If you’re still on the fence about the need to expand your business portfolio, take a diversifying lesson from Big Tech. They take major losses regularly but still manage to remain on top.