If you are one of those employers who like to hire only people that look like you, dress like you, think like you, walk and talk like you, same race like you, came where you are from, and all that, allow me to remind you of the importance of diversification.
You might have learned about it already if you have also been an entrepreneur or an investor of some kind for instance, it’s just you have not been applying it in other areas of your business life. Because most financial gurus and investors will tell you, the best way to invest your money or capital is when you invest it in various channels of investments. They say when you allocate your capital in variety of assets, you reduce the risk of losing your money rather than if you only invested in one particular asset.
When I was working as a program and finance associate in this one big organization, one part of my job was dealing with budgets. Even though I was based in one project, but we constantly needed to make sure we were not under or overspending our funds to avoid misuse of funds. Depending what the budget was for the year, we would allocate funds to different project activities, departments, and so on, to make sure all our targets and goals for the year were met. So diversification is the main tool that we can use when budgeting to make sure we allocate our funds accordingly.
But do you know that diversification is very common in some areas of life, especially for your personal or business growth? In fact, if you are planning to grow your company or organization to a global market level, you might be required to diversify in all aspects of the workforce to remain competitive and profitable.
The word diversity is more than just different gender, culture, language, or race. Diversity can be bringing different types of people, who stand for different things and represent different cultures, in different levels of skills and education that bring different experiences, ideas, and thinking.
Because different backgrounds, ideas, and perspectives can create better business outcomes and solutions to some problems, and also ensure better understanding of customers or end users. Since the customers can be as diverse as employees; therefore it will be best if our employees, products, and services to connect to the diversity of these customers we are serving in order to remain competitive and profitable in the global marketplace.
Therefore, companies with qualified and talented employees that represent the end users are more likely to develop innovative products and services that meet the needs of customers in different markets around the world. So as a business owner, or entrepreneur, or are in business management position level, in order to conduct business globally effectively, expect to find talents in unexpected places. Diversity management is the key to growth in today’s competitive global marketplace. And businesses that embrace diversity in the global marketplace will be more likely to succeed more.
Let’s say you are a local business owner, and you only target certain groups of customers in your local area for instance; but then, one day someone from afar from another culture and background, or country, basically an international customer came in contact with one of your local customers wearing one of your products and become so interested to want to buy that product. Would you sell to that customer if he or she approached you? Would you also consider expanding your business vision and considering updating your current target market? Maybe not now, but in your near future, after you have done your research and update your business plan.
Diversification is important because it can bring us more income. We can certainly diversify our gifts, talents, and skills to create multiple sources of income earning for ourselves. Perhaps we have heard of a few famous singers, who are song-writers, not only they write songs for themselves but for other people. But then, they are also music producers because they happened to master the skills through their journey in the music industry, but at the same time learned how to act in their music videos, and decided to take it to another level and became actors or actresses to the point to be featured in big movies. While hustling, they gained different business skills, and decided also to become serial entrepreneurs in music, or fashion industry, and so on.
There are people who started out as ghostwriters, who got paid to write anything really, before they made it on their own to become famous authors, or entrepreneurs. They wrote songs, books, screenplays, speeches, articles, blog posts, stories, poems, and so on, for other people to earn income and make a living.
The importance of diversification can appear in different ways, even to a customer; for example, I like to shop online when I can afford to do so, because honestly international shipping costs can be extremely high depending on the products you buy, and where you are shipping to. I currently live in Tanzania, but I like the fact that I have a diversity of places I can buy things that I want to buy online at my convenient. So let’s say I want to buy a new cell phone; therefore I can choose to buy it online from Amazon.com, Ebay.com, or from AliExpress.com. Both of these online services can provide me with what I may be looking for, and make sure my needs and wants are met. But shipping from U.S.A to my location can be much cheaper than shipping from China. I am not saying this is true, but as an example.
With the help of internet and advance technology, trading in the global marketplace can become so much easier. You can almost get anything you want from around the world with just a click. This is how competitive it is.
So if you want to minimize risks, especially financially, or open more opportunities and income channels for yourself. If you want to go to that route and you think you can manage, or if you want to expand your business globally, think in terms of diversification. It’s not necessary; then again, when it comes to your business depending on the industry, whether it be small, medium-sized, or large business, it is a must if you want to remain competitive and profitable in the global marketplace.
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