Best Business Practices

Best Business Practices: Pursuing Complementary Markets Through Diversification

There are those companies that simply ride the wave of growth of their particular market or industry. When the industry grows, they grow, and when the industry declines, they decline. Does this seem like a reasonable plan for continued growth, to be constantly tied into the success or failure of the market a company sells into? Most companies don’t even contemplate asking such questions. They merely go day to day, held hostage by their market’s fluctuating demands. Diversification is not only useful for personal investments, but is essential for companies who want to avoid the catastrophic consequences of a decline in their industry. Pursuing complementary markets and industries, is not only good business, but almost a necessity in today’s economy. So, what are the essential steps to setting the stage to pursuing other markets?

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