How many ways are there for a small business to fail?
Don’t try to count them … life is too short as it is …
I want to talk a bit about one of the dangers of solo Internet business.
I have always preached the message of niche specialization for the solo business owner. I say you should dig down deep and become an expert in a very tightly focused market.
Some have taken this message to mean that you should only focus on one product, or one single revenue stream … whether it’s a book, a device, a piece of software, a special service, whatever.
Lots of businesses are built on a single source of revenue. Yikes!
Some small businesses rely on a single method or strategy for all their marketing. Yikes!
Some businesses keep all their customer data, masters, and business records on one computer only. Yikes!
Some rely on one source of supply for all their products. Yikes!
Some acquire all their new prospects through one channel. Yikes!
Some are very satisfied to put all their business eggs in one basket. Yikes!
Yikes, yikes, yikes!
Okay. The point here is obvious. If your business relies on one method, one strategy, one product, one source of new customers, one single computer, one anything (for that matter) … you’re going to get burned at some point. Count on it.
A new product is released that renders your product obsolete …
A new technology is introduced that makes your current approach outdated and headed for the graveyard …
Your source of business leads dries up …
Your niche customers’ preferences change …
It seems a simple enough concept, but you would be very amazed to know the number of small businesses that are vulnerable to being taken down by one simple turn of events.
Can you afford to stake your business future on one strategy, or source, or one specialized product?
What if you had lots of products, lots of sources, many strategies and numerous ways to attract customers?
If one or two of them go down, or no longer produce, can your business survive? It might be difficult at first, but you will be able to remain in business with your core execution and products in place.
Certainly, it takes time and effort to set your business up on a foundation with many anchors.
But when the ground shakes, when the storms come, you will be able to survive some never anticipated catastrophes.
Diversifying your business systems to protect against down turns, slow cycles, new replacement technologies, and obsolescence should be the goal of every online business.
To your online business success!