(di-ver-si-fy)
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To give variety to; vary
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To extend (business activities) into various fields
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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.