Many of the entrepreneurs we work with seem to have “magpie” syndrome: They are always chasing after the next shiny object. Once they get past start-up phase, they get bored. They begin thinking about diversifying into other businesses and recapturing the thrill of creating something new.
While diversifying beyond your own core business may seem like a profitable move, it can also be a cash-sucking money loser. We would offer the following advice to help ensure that you stay on the positive side of the ledger.
