Diversification: Need or Not?
by afif on Nov.22, 2009, under
Diversification for some people regarded as a considerable step 'provocative'. The
reason is because behind diversification, there are a variety of
relatively greater consequences for the sustainability of a company.
So the question now is: "Is it true that an entrepreneur needs to take steps diversification?" True diversification is risky?
To get a more complete answer and thoroughly, we can not just use one point of view only. Also needed another point of view, the more fresh, and more rarely thought of by many people but still also have a logical reason and can be justified in the real business world.
According to the entrepreneur as well as business practitioners G. Kingsley Ward, what he believes about diversification by using his own perspective.
According to Ward, a businessman and entrepreneur needs to have a philosophy of "do not put all your eggs in the same basket" as the basis for doing business. That is, do not bet everything you have in only one area of business. By diversifying, you make the distribution or the distribution of risk as well. Therefore, when a plane goes into a recession, other fields will replace the driving forces of your business. Thus, the performance will be relatively more stable business.
However, your investment needs to be paid to the things that they do with the major industrial areas. Why? Because first there will be enough reserve funds to try out the new venture. Second, think about the manpower (HR) that you have. Whether they are ready to manage the company in the new field? The second is the principle of building a company around the people, not vice versa, people around the company). After having qualified human resources, you can then begin to take care of other matters as the establishment of the company.
Despite having a number of advantages that are worth considering, entrepreneurs also need to know the negative side of diversification. According to Ward, diversification should also be accompanied by awareness of the arrogance that often plagued the business owner, but if someone is successful in one area of business, not a guarantee it will be equally successful in other areas of the business. Hazard waste can also lurk at any time so you have to know when to expand, the need to be spending. Ssering reckless attitude that it could be misconstrued as optimism trap entrepreneur who wants to build another as the diversification of its business that is very successful.
Assumptions are still widely circulated is that by focusing on only one
area consistently, a businessman will be able to build a better
business and sturdy.
While diversification (spreading the business to be more than one) will
bring a higher risk, both in terms of funding, management, and other
crucial issues.
So the question now is: "Is it true that an entrepreneur needs to take steps diversification?" True diversification is risky?
To get a more complete answer and thoroughly, we can not just use one point of view only. Also needed another point of view, the more fresh, and more rarely thought of by many people but still also have a logical reason and can be justified in the real business world.
According to the entrepreneur as well as business practitioners G. Kingsley Ward, what he believes about diversification by using his own perspective.
According to Ward, a businessman and entrepreneur needs to have a philosophy of "do not put all your eggs in the same basket" as the basis for doing business. That is, do not bet everything you have in only one area of business. By diversifying, you make the distribution or the distribution of risk as well. Therefore, when a plane goes into a recession, other fields will replace the driving forces of your business. Thus, the performance will be relatively more stable business.
However, your investment needs to be paid to the things that they do with the major industrial areas. Why? Because first there will be enough reserve funds to try out the new venture. Second, think about the manpower (HR) that you have. Whether they are ready to manage the company in the new field? The second is the principle of building a company around the people, not vice versa, people around the company). After having qualified human resources, you can then begin to take care of other matters as the establishment of the company.
Despite having a number of advantages that are worth considering, entrepreneurs also need to know the negative side of diversification. According to Ward, diversification should also be accompanied by awareness of the arrogance that often plagued the business owner, but if someone is successful in one area of business, not a guarantee it will be equally successful in other areas of the business. Hazard waste can also lurk at any time so you have to know when to expand, the need to be spending. Ssering reckless attitude that it could be misconstrued as optimism trap entrepreneur who wants to build another as the diversification of its business that is very successful.
