DIVERSIFY DIVERSIFY A Key Growth Strategy for Small
- Slides: 6
DIVERSIFY, DIVERSIFY… A Key Growth Strategy for Small and Mid-Sized Firms Laura Didyk Vice President, Financing & Consulting – Alberta South BUSINESS DEVELOPMENT BANK OF CANADA (BDC) 1 | Diversify, diversify…
WHY DIVERSIFY? 1 DIVERSIFIED FIRMS OUTPERFORM UNDIVERSIFIED FIRMS Portion of firms with strong revenue growth 69% Diversified in five ways 49% Diversified in four ways 47% Diversified in three ways 45% Diversified in two ways 35% Diversified in one way Undiversified 17% 2 | Diversify, diversify…
2 WHAT IS DIVERSIFICATION? 1 Don’t rely heavily on a single client 2 Have multiple product or service lines 3 Operate in more than one sector 4 Have clients or a physical presence in more than one city 5 Sell internationally 3 | Diversify, diversify…
3 WHY DON’T MORE BUSINESSES DIVERSIFY? 1 1 Problems accessing capital 35%of small businesses anticipate difficulties accessing capital 2 Lack of awareness 60% of businesses indicated they are unsure how to respond to the downturn Source: June Warren-Nickles and Grant Thornton’s Canadian Oil and Gas Services Supply Outlook survey 4 | Diversify, diversify… for March 2016
4 WINNING DIVERSIFICATION STRATEGIES Fully harness existing assets Pursue small contracts REMEMBER The purpose of diversification is not only to grow, but also to manage risk. Work with partners 5 | Diversify, diversify…
CAN ECONOMIC 5 HOW DEVELOPERS SUPPORT DIVERSIFICATION? Increase awareness Highlight success stories Connect entrepreneurs with resources 6 | Diversify, diversify…
