How to Diversify Your College Business
Imagine this. The demand for your product is high; you’ve been selling it like hotcakes. And then…before you know it, your PSP supplier has run out of product and so have you. Or a glitch in the system causes people to buy the DS Lite instead and your sales drop dismally. Or a virus hits your personal computer, wiping out all your files and you have to start from scratch.
Putting one’s eggs in a single basket only to find a gaping hole in it –or having it stolen –is avoidable. Like any college business blunder, there are ways you can plan ahead and learn from other people’s mistakes instead of your own.
For one, DO NOT put all your eggs in one basket. Sometimes, the possibility of something going wrong in the future isn’t a question of “if”; it’s a question of “when”. Survival in business entails that you diversify.
Here are a few important tips on how to diversify one’s college business:
Find suppliers who will be readily available when the others won’t be. Expand your supply chain. If you rely on only one supplier for your product, for manufacturing or for your materials, your business can collapse very quickly. If you’re at peak season, it is always wise to have suppliers lined up with contingency plans if one of them doesn’t deliver.
This goes for your customer. Don’t rely on a single niche or a single person. When you lose him or her, your business will die with them.
Don’t lose yourself in one product. If you’re selling PSP’s, then you may want to start developing additional products and services. Sell and market PS2’s, or write gaming reviews for gaming blogs and earn a little more. Concentrate on something gaming-related; it’s always better to have something complementary instead of diverging from your line completely.
Diversifying doesn’t mean that you expand quickly. Conduct a study of your market and what your customers are buying in conjunction to yours. Research goes a long way, and remember, so does a mind for the future.
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While this is true and wise advice, it overlooks something I think is pretty important. Occasionally in life, investments, and business one must take significant risks to see significant results. I’m not saying go wild, but moderate risks here and there are to be expected and normal.