Expert in residence discusses diversification

At a recent SMART Session delivered in Tamworth and Armidale, Expert in Residence Mandy Walker guided participants through the pros and cons of business diversification.

“We know there’s strength in our diversity.  Different skills, experiences and perspectives provide a richness to both our personal and professional lives,” said Regional Connector Pip Spilsbury.

In business, the term diversification is used anytime we develop a new product or service, or decide to enter a new market. Business owners often consider diversification to make more sales, to experience less risk, to build on potential new opportunities or relationships, or because the core business is in decline. No matter the reason, diversification is one of the toughest decisions we make in business and can be full of pitfalls, uncertainty and unnecessary costs in time, energy and money if done poorly.  

Mandy advises anyone considering diversifying their business to experiment first. Experimenting is different from making the decision to diversify, and follows American businessman Warren Buffett’s insightful quote "Never test the depth of river with both feet”.

“If you are considering diversification, experiment and test every aspect of your idea, research your market more deeply, experiment and test again to learn as much as possible before choosing your diversification strategy,” said Pip.  

“I would encourage founders to reach out to the UNE SMART Region Incubator for advice, and we can connect founders with one of our Experts in Residence.” 

SMART sessions are offered regularly and cover a range of topics.