What are some of the risks and challenges of diversifying your small business?

With my past experiences, it always served us well to learn about the industry, the business, and more importantly the decision makers. I see too many advisors assume the company's needs and pigeonhole them. The decision makers have their own philosophies and objectives, and it our obligation to learn everything we can before we recommend anything.

If you are a new bussiness owner You should have done economic feasibility study to know how much profit you will make on "X" investment. You must have some contingency planning in order if you you fail. Also you should know the pain points of your customers so that you can target them and get profitable To run your bussiness in longer run you should have the vision statement already in place

From my experience in business for over 15 years one of the big problems I see in diversifying small business is first the resources and sometimes the human resource itself. Diversification of business activities requires that the person involved should also be equipped and equip his team. The risk I see here is that some of your team members who are already comfortable with the present activities may find it difficult to adapt to new ones and may not be collaborative enough.

Diversificar un peque?o negocio puede ser beneficioso, pero presenta desafíos. La falta de conocimiento puede llevar a errores. Solución: invertir en aprendizaje y contratar especialistas. Realizar un análisis de mercado completo. Implemente sistemas de gestión eficaces y delegar responsabilidades. La diversificación puede ser financieramente arriesgada, para ello, realzar un análisis financiero completo. Los cambios de mercado pueden afectar negativamente, por tal motivo hay que mantenerse actualizado sobre las tendencias y diversificar en diferentes mercados. La diversificación debe hacerse con cuidado y planificación.

From a CRM implementation perspective, it is critical to plan your business process to understand each phase of the sales cycle and what opportunities for cross selling may present themselves during which phase of the selling cycle.

This is one of the common problems when working with my clients. They want everything all at once. Having someone by your side who can focus you on one goal at a time is key to success. Having a competent co-founder can be helpful in this regard, as you can keep each other in check. Make sure to set OKRs so that every time the desire to "let's do this" arises, you can compare it against them and ruthlessly discard it if it doesn't align.

I agree that it's important to listen to customer feedback and believe customer communication either in person, by video meeting or phone is the best way to get ideas and insights from your customers that can help increase delivery.