In this market (and always), stick to your core business

The amount of times I have had discussions with people around "diversifying" and getting into new businesses/offerings because of the current times scare me.

Everyone has heard about "Stick to your core business" and you will succeed - there are countless management books and leaders spruiking this - so why, just because of the slow down is it a reason to get into "more businesses"?

I know all the obvious reasons, but I don't think that now is any different to the boom times when evaluating "new" businesses so why do people look more around this topic now than in the good times. It's because when business slows down in your core business you are often drawn to other business offerings that may be booming more.

I am not saying not to evaluate new business offerings but you should definitely think twice (or maybe even 1 times).

One of the fundamentals I have always learnt is to play to your strengths. So if the business is going well, work out what is working well and do more of it. Don't slow that down and do other things that will impact your ability to do more of what you do well.

Today the current economic conditions seriously test this theory about core business - but personally I think now is the BEST time to be doing more of what works, rather than the other way around.

If business is slowing, it doesn't mean you are not good at your core business - it means you have to go to either do more with existing customers, or find new customers - but DO NOT start new offerings and stop doing your core business just because things have slowed down.

Now is the hardest time to be setting up new businesses organically.

Go get more customers. (I know that is easier said than done)

I can personally vouch for this over the last 4-5 months. It has been a challenge that's for sure, and there was a time I really questioned our strategy and core offerings, but sticking to our guns has worked out - we just needed to speak to more customers.

Although the storm hasn't completed passed, I can see blue sky now.