There are many very successful businesses out there firms that any entrepreneur can learn from. One thing you will notice about the biggest and most successful companies is that they all diversify.
None of the most successful firms sell only one product or service. Take for example the Virgin Group. Richard Branson and Nik Powell founded the business by opening a record shop. Today, the group is involved in thirteen different sectors.
Another great example of someone who has stayed successful by diversifying is Reuben Singh. His entrepreneurial journey makes for interesting reading.
The early days
Mr. Singh first became interested in business as a boy. His parents ran an import business that they grew from nothing.
By the time Reuben was 12 his parents’ business was already quite big. His parents could afford to give him a good education and he went to a prestigious grammar school. He paid attention to his schoolwork but took the time to accompany his mother on business trips to Asia and learn how to purchase in bulk from abroad. This was knowledge that would stand him in good stead in his first business venture.
At 19, he set up a retail shop selling makeup and accessories targeted at girls and teenagers. It was a great business idea. He had done his research and determined exactly what it was his target customers wanted.
In the first week, his customers practically cleared the shop of stock. Within months, Reuben had opened several other shops. When he sold the business just four years later he had over a hundred shops. By any measure, his first business was a big success. So much so that Mr. Singh was a millionaire, the youngest self-made millionaire Britain had ever seen.
This success led to the business community nominating him for numerous awards. Several of which he won. The UK government tapped into his expertise and he served on several important committees.
His other businesses
While running his chain of stores he saw several other business opportunities. He got involved in shop fitting and manufacturing when he became frustrated with the prices some firms were charging him. The same thing happened when he realised that he was losing money because of currency exchange fees. To solve the problem he set up his own currency exchange firm.
His businesses today
Today, Mr. Singh is still the CEO of alldayPA a firm that Mr. Singh set up 16 years ago, to provide a professional call answering service for businesses. It was a great idea, but it took several years for the firm to take off, but when it did things moved fast and they are still growing. Last year alldayPA moved to new premises in Salford. They have just embarked on a £2.5m sales campaign with plans to double the size of the firm.
In addition, Mr. Singh is expanding Isher Capital. This finance firm specialises in providing guidance and funds to entrepreneurs. Having been in business for 20 years Mr. Singh knows how important cash flow is to success. He uses his experience to help firms to realise when they need to borrow and when they need to pause and take stock.
By diversifying, Reuben Singh has amassed a fortune, and he continues to use that approach to secure future success.