When starting a business, it is better to focus than to diversify

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It is common for entrepreneurs involved in starting new businesses to feel motivated and have a spectacular energy to implement new ideas. The desire to make things happen overcomes any operational obstacle. But this impetus does not always bring interesting results when diversity cannot be implemented, since the entrepreneur does not gain scale, that is, he does not multiply.

At the beginning of any business, with rare exceptions, the company has a lean structure, with few employees and few resources. In addition, it does not have a well-known brand or a track record in the market, which means it needs to prove itself, win the first major account or sell to a key client. Much needs to be done to gain customer loyalty and supplier commitment.

The leading entrepreneur must be at the panama phone numbers forefront of these actions and therefore will have no alternative but to focus. By focusing, you will be able to learn more about your business model and validate or reformulate your approach and optimize your product based on customer feedback.

It is no coincidence that successful entrepreneurs, when they tell their stories, remember that in the beginning it is very important to have focus, so as not to get distracted by ideas at every moment and get off track.

Only after the entrepreneur feels that he or she is already well established in the market (which can usually happen after a year) is it time to think about diversification, conquering new markets, new customers, developing new products and continuing to innovate. The company will probably already have a different structure and will allow for more comprehensive actions.

Of course, there are exceptions to the rule, and you will always find businesses that grow quickly by diversifying from the beginning. In an increasingly competitive environment with increasingly demanding customers, entrepreneurs must be the best in their field. And this can only be achieved with total focus, always resisting the temptation of new ideas and projects at any time.