Diversification

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A risk-reduction strategy that involves adding product, services, location, customers and markets to your company’s portfolio. Many small companies are one-trick ponies, betting their entire futures on a single product, a single service, a single location or even a single customer. But as you grow larger, you’ll find opportunities to add products, services, locations, customers and markets. Diversifying in this way can help your business weather tough times by providing alternate sources of revenue in the event that your original market dries up, stops growing or is hit by new competition.

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