GUEST POST - If we have learnt anything in the past year, it’s that to keep afloat, businesses need to embrace change. From recognising changes in customer demand to adjusting buying habits, businesses need to be agile enough to pivot in unusual circumstances.
Those that don’t tend to be left behind. Take the high street for example – many businesses that were once thriving hubs in our towns and cities are now bankrupt. In fact, South Africa has one of the highest business failure rates in the world.
However, one way to avoid the fate of businesses before you is by diversifying. Not sure how? Let us explain.
What is diversifying
Diversifying is the business equivalent of not having all of your eggs in one basket. Rather than banking on one key service for example, diversifying takes what you have and turns it into what you need. This flexibility and willingness to change is key to diversifying.
What are the benefits of diversifying?
One of the main benefits of diversifying is that it helps businesses remain resilient and financially stable in tough times.
For example, during Covid-19 many businesses were forced to close. Yet some used that time to diversify and develop their offerings.
As well as producing sustainable growth, diversifying also means you can become an effective, streamlined business.
Why is diversification relevant to your business?
The businesses that stand still often stagnate. Therefore, business diversification should always be on the agenda in one way or another.
Even more traditional industries will do well to diversify. A prime example of how diversification is relevant for all sectors is the story of Forex brokers, Tickmill.
When interviewed, Ingmar Mattus, Executive Director and COO of Tickmill Group said:
“Progress is an integral part of our business, and we see a shift in market interest towards multi-asset trading and more flexible platform solutions. Not only does the MT5 platform deliver a powerful and functional trading environment but it also adds to the analytical capacity of the MT4 platform by offering superior analytical tools, algorithmic trading applications such as trading robots, Expert Advisors and copy trading.”
“We believe that providing the MT5 platform in addition to the MT4 would add value to our clients’ trading experience by offering them those extra possibilities powered by a next generation trading platform.”
This is a prime example of the benefits of diversification and how it’s relevant even for the industries where diversification may seem less obvious. For example, diversification has also lead South Africa’s mobile phone market growing by 50%, making it the 4th fastest in the world.
The bottom line…
Where businesses may have been happy to sit on their laurels and remain one dimensional, nowadays to succeed, businesses need to diversify. Although there is no short cut to success, by understanding what your customers need and responding accordingly, you’ll be well on your way to a sustainable business model.
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