Ask any savvy investor and they will tell you basically it means not to put all your money into just stocks, bonds, CDs, etc.
Some people believe it’s better to be diversified [varied]in their investments to obtain steady growth. Another strong point is to protect their hard earned money from a catastrophe, such as a major plummet in stock price or worse a total crash!
So how does this apply to your online venture? Say you’re a big time seller on an auction site and suddenly, without substantial reason, your selling privilege is suspended or revoked! It’s happened.
Another example is suppose you’ve got a big money making website that’s your sole bread-and-butter and your website’s hosting server goes down and stays down for quite sometime? That’s reality as well.
Are you prepared to suffer the financial consequences of having that lost income? Do you have a backup plan? Will you be able to recover at all?
Think about it! If you haven’t planned for a catastrophe then you may be flirting with disaster.
So how do you protect your online business? There isn’t any one right answer, but here are some ideas to give you something to think about:
1) Create more websites that make you money. Easier said than done, but an idea. If you do create other websites you may want to try a couple different hosting companies. It’s more to keep track of but, it may be safer in the long run.
2) Invest in some offline ventures. Perhaps another business or real estate.
3) If you’re selling on an auction site consider getting another user account if possible. Have your spouse or trusted friend get a user account. In case of an emergency you may be able to make a lateral move and start selling your items again until you can get the issue resolved.
4) Incase your primary product supplier starts drying up make sure you have at least two or three more contacts that you’ve already established a rapport with. You want to keep product flowing without interruption in your business.
5) Don’t rely on just one or two methods for promoting your business. Diversify with Pay Per Click (PPC), write EzineArticles, hand out business cards with your web business address (URL) on them, create a viral marketing campaign such as a free ebook with affiliates links in it, and so on.
6) Make sure you have backup copies of all your important files necessary to get you up and running again. Take a copy of that backup and store it off site somewhere in case your home or business burns down-heaven forbid!
My inspiration for writing this article came from several recent events that I heard of where ordinary folks like you and I got shutdown from their online activities for situations beyond their control. Large amounts of income were lost as a result.
If your online business is fruitful and you’re happy with the way life is going then make sure diversity is part of your game plan!
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