Do You Diversify?
You should! Diversification is important in any business. Naturally if you are stuck in 9-5 with a secure job this might not be an issue for you. For all others who operate their own business, diversification is very important.
Factors outside your reach will always interfere with your business. While you can’t do much about natural disasters except pray for the best, you can prepare yourself for unexpected business twists. One such twist has just happened in my business but I’m not worried, since I have several things I’m working on to guarantee my income.
I see many freelance writers who do simply that. It is ok to write for a living but have you ever considered the alternatives? What will you do when you get sick? How about a momentary lack of clients?
Regardless whether you are a writer, an affiliate marketer or a web designer, I think it is important to plant your seeds in various pots. If the rain floods the one pot and you lose your seeds, at least you have several more to nourish and tend to.
Nobody is safe from influences outside our reach and the sooner you prepare for these events, the better you will be able to rise out the consequences.
Even jobbers can diversify if they are worried about the security of their job. You could start your own online business.
You could also sell your own products offline. There are thousands of possibilities to earn money besides what you already do.
If you haven’t been thinking about diversifying, I suggest you do now. Give it some thoughts, because you will benefit from this in the long run.
Fort those of you who do, feel free to share your thoughts on how you are dealing with this.
Thanks
Monika
About the Author: I'm a passionate freelance writer and problogger. To further build my business I'm also in the process of building my own niche empire which pays me residual income.
Alex Fayle | Someday Syndrome | Sep 17, 2008 | Reply
I have income from several sources:
1. I teach English part-time and that covers the basics
2. I have a client for whom I write scripts for the web and worksheets and ebooks
3. I sell a workshop through my blog
4. I am developing another information product with a colleague for future sale
Sometimes things get a bit tight but for the most part I get by and it will just continue to grow.
Cath Lawson | Sep 17, 2008 | Reply
Hi Monika – It’s definitely important to have your eggs in many different baskets isn’t it? Look at Richard Branson – he’s got loads of different businesses. Some of them have bombed, so if he’d just stuck to one or two, he might have been skint now.
I think the difficulty is getting one plate spinning then adding another. It’s so easy to try to do a few things at once and get totally muddled and achieve bad results.
Lance | Sep 17, 2008 | Reply
This is good to think about, no matter what is is we do. I currently have a day job, but have begun writing on the side. Someday, I’d like to switch that around, where writing is a bigger part of the pot. And, when I do that, I definitely don’t want all my eggs in the same basket (thanks, Cath for the term!).
Thanks for the thought today…
TDMV | Sep 17, 2008 | Reply
Diversity is for me a way of life … and for doing business. It gives me more security, flexibility, and satisfaction. My business for instance started out as just an informational site on death & dying. Responses showed me that setting up another site, where I sell related books, was a logical and necessary step. Furthermore, one minor item I used to write about (natural burial), turned out to be a ‘crowd pleaser’ so it has become a spearpoint (and a trademark even for my business). As I became aware that there is a wide interest in ecological products (biodegradable urns), I’m starting up another business focussing on that. More ideas are in the works; I try them out on my main site, and monitor responses.
But I’m not only interested in my main subject so recently I started writing for other bloggers on non-related subjects (like social media).
All these things not only give me more ways to generate income but they make my ‘job’ much more fun and satisfying!
Brett Legree | Sep 17, 2008 | Reply
Monika,
A great post and this part is especially important for those of us still working for “the man”:
‘Even jobbers can diversify if they are worried about the security of their job.’
I work at the only large high-paying company in my town – a similar job could only be found about 200 km away. And a lot of folks here think The Factory will look after them forever.
Yet a really major project was canceled not long ago… one that cost a lot of money, and had been going for over 10 years… so it can happen!
-Brett
Kelly@SHE-POWER | Sep 18, 2008 | Reply
Hmm, I know you’re right and diversification is a winning formula for any profitable venture, but I really don’t have the focus at the moment to juggle multiple projects. I only wish I had less ideas. I’m always thinking of new website ideas and new novel ideas. My problem is actually deciding where to put my time and energy.
Keen to read what everyone else has to say about this. I’ll be keeping tabs on the comments.
Kel
Monika | Sep 18, 2008 | Reply
@ Alex: Smart man. I’m sure it will grow even more from here. You definitely seem to be on the right track which is awesome. Thank you for sharing this with us.
Monika | Sep 18, 2008 | Reply
@ Cath: I totally dig Branson as a role model. He has this way cool personality that looks like fun and ease. And yet, by reading his novel I learned he can be as hard as nails when things get tight.
Like you said, many struggle with getting things rolling. It is only because they don’t focus on the one thing.
My motto is to start one thing, build it, manage it, then move to the next.
Monika | Sep 18, 2008 | Reply
@ Lance: Good thinking for sure. I think it is important to think about these things early on. BTW, I tried to visit your site but it took ages to load, not sure why?
Monika | Sep 18, 2008 | Reply
@ TDMV: You sound like a true marketer and what you did is not only smart but also the right way of building your business. You saw a demand and delivered.
I must be honest though. I would have never even thought about death as a niche. Interesting to see it works for you. Thank you for sharing.
Monika | Sep 18, 2008 | Reply
@ Brett: So does this mean there will be some downsizing happening at the factory soon? That is the thing. People thing their job will be there forever…until it is no longer.
Monika | Sep 18, 2008 | Reply
@ Kelly: I hear you. I also understand what you are saying. Like you, I have all these ideas but realized last year that I had to act on something, otherwise I would always chase my tail.
It worked and now I know that unless we focus on an idea and really work it, nothing will ever come of any idea.
TDMV | Sep 18, 2008 | Reply
lol .. you would be surprised how many want to find information, and how little can be found on the Internet. But I didn’t simply start a ‘niche business’; the subject had my interest for a long time, and I realised I had gathered info and knowledge but didn’t do anything with it. However, when I started 5 years ago even my best friends told I was crazy. I thought so too but I followed my gut feeling. Turns out I wasn’t only right but it changed more then I had anticipated. Media picked it up, and now ‘death & dying’ is becoming a regular topic in nationwide discussions. Sign of the times? Who knows.. sometimes you just have to believe your intuition.
Brett Legree | Sep 18, 2008 | Reply
@Monika,
While there is nothing out in the open officially, just about anyone who took even five minutes to read the tea leaves would see what is coming down the pipe… so I’ve got other plans in the works!
-Brett
Monika | Sep 18, 2008 | Reply
@ TDMV: Awesome. I’m a firm believer of following your gut feeling. It works for me too. Amazing you get picked up from the Media on this kind of topic.
I wonder why this topic is so popular? Do you find it concerns young people as well as old, or are most of your readers older?
TDMV | Sep 18, 2008 | Reply
Intuition plays a more important part in how we make decisions than most of us would care to admit
. Although one mustn’t forget ‘common sense’.
Why is this topic so popular? That could be an article in itself, but to be short: people want more and more to express themselves in a more personal way but don’t know how. And, I think, people are slowly becoming aware that death is part of our lives, and not something you try to forget or deny.
Most of my readers are roughly 35-50; they are confronted with the illnesses & deaths of their parents, and start to think like ‘I’m next in line, and I don’t want it like this anymore’.
Monika | Sep 19, 2008 | Reply
@ Brett: I’m so excited for you. I really am and I can’t wait for it to happen. You are well on your way now and shouldn’t have to worry about the widget factory at all anymore.
Monika | Sep 19, 2008 | Reply
@ TDMV: This is very interesting. Thank you for coming back to answer my last question. I have to say I’m intrigued by this because I haven’t personally thought about death and dying myself. I prefer to focus on life instead and bu saying I wouldn’t think about the end at times is a lie too.
I suppose right now it doesn’t concern me in ways were it would be a big issue.
For those people who read your blog and need support, I think it is great what you provide them with. I understand they might feel scared, lonely or desperate and need this outlet to connect with others on the same level.
It seems you are doing a great service to the community really with your blog. I really would love to understand this more but I suppose i have to wait until you launch in English.
I TAKE OFF THE MASK | Apr 21, 2009 | Reply
Diversification is indeed spreading your risks so you won’t get hit when something happens to one of your sources of income. No matter how much you earn with one source, you can never really be sure it would yield for you forever. Good business advice. Applies also to other things in our personal life.