Diversifying Revenue Streams
Speaker 1: Hi, I'm Rick Dennen, President and CEO of First Franchise Capital Corp., and welcome to Foresight blogs. Diversifying revenue sources, and even some of your costs of revenue, can be critically important at certain times if you've got concentrations of customers, concentration of vendors, concentration of geographic regions. It can be a curse, if you don't have the skillset enabled to diversify, it's going to spread you too thin, and you're going to expand into an area that you don't have expertise in. The critical component there, to me, is really understanding what your core competencies are in your business. Why you're trying to expand, and ensuring that the reason for the expansion, you've got the skillset to be able to do it, you've got the markets, and it's going to be a profitable endeavor.