Why Diverse Executive Teams Outperform Their Specialist Counterparts
Many business specialists would give the age-old advice of focusing on a specific expertise when starting a company. Though effective as it seems to be, there are still some downsides to being too narrow in terms of your focus or experience.
According to winery business owner Denis Mackenzie, there are ways that variation can beat a very narrow focus. In fact, here are the possible things you may encounter if you dwell in a business with a small market:
- Lack of demand – whether you plan to go varied or narrow, you should still perform appropriate market research. The thing is, narrow-focused businesses have a higher risk of lacking demand that makes their profits unsustainable.
- Loss of opportunities – when you focus on a very specific niche, like for example, white wines compared to covering all types of wines, you may be missing out on possible opportunities to expand and grow your business.
- Difficulties in networking – having a narrow-focused business means not a lot of companies would want to affiliate with you. Those only related to your business niche might be the only ones wanting a connection, making you lose the chance to be a part of a bigger network.
What are some of the benefits of having varied experiences in business? Denis Mackenzie shows us through this post.
How Varied Experience Trumps Narrow Focus
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Varied experience means flexibility in any industry.
Having a varied experience in multiple types of skills make you a flexible entrepreneur. David Mackenzie started out as a young man working for wine companies, and he moved up to sales management. He discovered that he had his own entrepreneurship skills and decided to research and make his own mark in the winery business. The combination of retail and entrepreneurship skills made him succeed and become flexible in whatever path he chose.
Another great benefit of flexibility is to have a way to explore other business options. Let’s say that on one occasion, your original business plan didn’t work. As a result, you may want to explore other options from your arsenal or varied experience.
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Varied experience means social proof.
Varied experience also means that you have already made a name for yourself in different industries. Although there’s a popular saying that goes “Jack of all trades, master of none”, you can actually flip the script and call yourself “Jack of many trades, and a master of all of them”! This means that you have social proof that you can become successful based on your varied interests.
If you take a look at the Forbes top billionaires and millionaires, you may notice that they don’t usually focus on a single industry. For example, Elon Musk has several businesses up his sleeve. This makes him gain social proof that he can be successful in the paths he wishes to choose. If you own a winery, it may be best to have the main niche, but don’t be afraid to explore other varieties to build a good reputation.
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Varied experience helps build larger networks.
As mentioned earlier, having a limited experience means that you can only create smaller networks. When you enter the realm of entrepreneurship, you may notice that the people who have started businesses in several industries have bigger networks.
This means that they will be open to more opportunities and partnerships that could catapult their business into success. Networking does not necessarily mean that you will also make connections with those related to your business. In fact, you can still get recommendations with seemingly non-related industries as long as they see that you have a varied experience of skills under your belt.
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Varied experience allows for more ideas to pursue.
The birth of an idea could mean a lot of things for an entrepreneur. In fact, the merging of two skills or experiences could be something revolutionary. For example, Steve Jobs combined his skills in computing and technology to enhance communication. Jeff Bezos started Amazon by combining his experience in retail book sales and his knowledge of technology.
The merging of many skills may be a gateway for innovation that could bring fortunes to you and your business.
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Varied experience means a bigger likelihood for expansion.
According to Denis Mackenzie, varied experiences mean that you have a better chance of expanding your business on a global scale. For example, there are entrepreneurs who also travel certain parts of the world. They understand each country’s need, and they can decide whether they would want to expand their business from there.
Traveling, learning from others, reading books and discovering new ideas can all help you build an empire from scratch. Although it goes against traditional advice, it’s a characteristic that can definitely help your business grow.