To give variety to; vary
To extend (business activities) into various fields
To spread out activities or investments, especially in business
In today’s market place it is imperative for many businesses to diversify to survive.
A business diversifies by offering assorted goods and services, participating in new industries, or finding multiple uses for its products. This is a course usually taken by businesses who feel threatened by competition or just want to expand their customer base and revenue sources.
The best example of diversification that I can give is that of my own. I bought my radiator shop in August of 2002. That year I grossed $55,000 in sales. I realized then that I was not going to survive on the radiator business alone.
Having been a part of the Tubes n’ Hoses family before and realizing it’s potential, I purchased a Tubes n’ Hoses system. Fast forward thirteen years, and in 2015 and 2016 I grossed over $1,000,000 in sales. The Tubes n’ Hoses fluid line fabrication system made it possible to reach out to new customers as well as take care of the ones I already had. The radiator business is about 20% of our total income, fluid lines are 60% and related products such as hydraulic adapters, quick couplers, air products, etc make up the other 20%.
Diversification allowed me to remain my own boss and grow my company beyond my expectations.