Subtitled, why your business should dig a well.
I just read an article
about what caused the Mayan civilization to collapse. While there may have been
many additional reasons, the main one discussed in this article was climate
change and lack of water.
Due to the lack of rivers in the Yucatan, the Mayan relied on the seasonal rainfall to refill their
fresh water storage. While these reductions amounted to only 25 to 40 percent in annual
rainfall, they were large enough for evaporation to become dominant over rainfall.
Let’s just replace the
words water and rainfall with money and cash flow. Are you too dependent on
cash flow from one particular segment of your business? Would that 25 to 40
percent cut cause your extinction?
The rain of money that
comes from cloud bursts are great, however you have to have a drought proof
source as well. Grandma might have said don’t put all your eggs in one basket.
How does this fit with
your business philosophy? Do you approach your market in a narrow focused
vertical, gaining deep penetration, or a broad based approach doing a little of
everything? There are ways to create different revenue streams in both of these
models. Find recurring revenue, one time sales, and services revenue across all
your business divisions.
So while the rain is
falling, you may want to dig a well.
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