Six Reasons Why You Shouldnt Be Diversified-twoo是什么网站

Business Diversification is a great financial planning strategy, but does it really work for the business youre building? How does Vitamix get away with charging $700 for a blender when similar .panies like Cuisinart and Breville make blenders for less than half the price? Its because Vitamix does just one thing, and they do it better than anyone else. WhatsApp was just a messaging platform, but Facebook bought them for $19 billion. Why? Go Pro is another example. They just make helmet-mounted video cameras. But they are the best in the world. These .panies stand out because they poured all of their scarce money into one big bet. In business school, were taught to be diversified and cross-sell our way to a secure business with a balanced portfolio of products. That way, if one product category tanks the other line will hopefully boom. But the problem with selling too many things – especially for a start-up .pany – is that you dilute everything you do to the point of mediocrity. Here are six reasons to quit being a jack-of-all-trades and start specializing in doing one thing better than anyone else: It will increase the value of your .pany When you sell one thing, you can differentiate yourself by pouring all of your marketing dollars into setting your one service apart, which will boost your .panys value. How do we know? After analyzing more than 13,000 businesses using The Sellability Score, we found .panies that have a monopoly on what they sell get buy-out offers that are 42 percent higher than the average business. You can invent a brand Large multinationals can dump millions into each of their brands, which enable them to sell more than one thing. Kellogg can own the Froot Loops brand as well as Pringles because they have enough cash to support both brands independently-but with every new product .es a dilution of your marketing dollars. Its hard enough for a start-up to build one household name and virtually impossible to create two without gobs of equity-diluting outside money. Youll be findable on Google When you Google helmet camera, Go Pro is featured in just about every listing, despite the fact that there are hundreds of video camera manufacturers. Its easy for Go Pro to maximize their website for the keywords that matter when they are focused on selling only one thing. Nobody likes to root for Goliath Start-up .panies with the courage to make a single bet get a bump in popularity because were naturally inclined to want the underdog – willing to bet it all – to win. When Google launched its simple search engine with its cute two search choices Im feeling lucky vs. Google search, we all kicked Yahoo to the curb. Now that Google is all grown up and offering all sorts of stuff, we trust them as a .pany, but do we still love them? Every employee will be able to deliver When you do one thing, you can teach your staff to execute, unlike when you offer hundreds of products and services that go well beyond the skill level of your junior staff. Having staff who can deliver means you can let them get on with their work, freeing up your time to think more about the big picture. It will make you irresistible to deep-pocketed buyers The more you specialize in a single product, the more you will be attractive to an acquirer when the time .es to sell your business. Acquirers want things they cannot easily replicate themselves. Go Pro (NASDAQ: GPRO) is rumored to be a great takeover target for a giant .pany like a Facebook or Google that are hungry for more content. Most consumer electronics .panies could build their own helmet-mounted cameras, but Go Pro is so far out in front of their .petitors – they are the #1 brand channel on You Tube – that it would be easier to just buy the .pany rather than trying to claw market share away from a leader with such a dominant head start. Diversification is a great approach for your investment portfolio, but when it .es to your business, it may be a sure-fire road to mediocrity. About the Author: 相关的主题文章:

« »

Comments closed.