It’s the most common investment advice you hear.
You do it with your assets, your wealth, investment types, even investors.
Diversifying protects your downside. It prevents massive losses and minimizes risks to your portfolio. Diversifying is arguably one of the most important concepts for wealth management. After all, if all your eggs are in one basket, you can’t afford to drop it.
But diversifying isn’t the way to maximize growth in business. Quite the opposite.
In business, you must constantly stay ahead. You must find your unique perspective and use it to claim (and protect) a portion of your market. Then, with that as a foothold, you have to grow your market share and squeeze out the competition, or at least prevent your competitors from encroaching on your territory.
To do that requires learning — continuous, focused learning.
Take, for example, a “diversified business owner.” He spends one part of his day selling technology, then rushes over to work on marketing for a bakery, finally finishing the day with a trip to his hair salon to manage the books.
Clearly this is not optimal.
The problem is, this owner can’t apply the lessons he learned in from business to the next. His actions are fragmented and unfocused. He can’t use the experiences from one company to make the next better.
Entrepreneurship requires focus.
Focus on learning the right things. Focus on learning the right skills. Focus on applying what you learn to run a more efficient, productive, and profitable business.
When it comes to your investments, diversify. When it comes to your business, focus.
About The Author