Putting all your eggs in one basket? Think again!
The failure percentage goes sky-high if you only have one big customer or one line of product/service to provide. Operating in such a manner is very irresponsible and risky as an entrepreneur. On the other hand, if you have multiple sources of revenue and multiple customers to rely on, it’s easier to survive failure from a single direction or source. At an early stage in your business, when the cash flow might not be ample for R&D, you have the chance to invest in Intellectual Power of your employees and yourself. Investing in minds and the ideas they produce can help you diversify your business in the following ways:
1) Diversify Your Customer Base
Heavily relying on one customer for bulk orders or high-value orders is not a wie strategy. You never know when the customer goes bankrupt or simply decides to move his business elsewhere, which will leave you in a rut. That is why it is crucial to acquire more customers. Sell to new and newer customers to build a wide customer base that can be handled by your team. Onboarding more and more customers in a feasible and manageable way gives you leverage to price your products aggressively and win the business of your customers for the long-term.
2) Diversify Your Products and Services
If you sell only one kind of product or services, you run the risk of getting obsolete or being usurped by your competitors through cheaper pricing and a plethora of other factors. That is why having multiple sources of income, while maintaining focus and remaining committed to your core business model will definitely help you grow and be more secure.
For instance, apart from content creation to earn through ads, youtubers also sell merchandise and other products on the side which helps them generate extra revenue and facilitates brand-building. Moreover, they try to get sponsorship deals by integrating certain companies and their products in their video to bag those deals. They also try to venture into different concepts apart from their original theme to keep the channel interesting.
Written by Gagan Dhawan
