Stake­hold­ers can­vass di­ver­si­fi­ca­tion as path to eco­nomic growth

The Guardian (Nigeria) - - APPOINTMENTS - By Glo­ria Ehi­aghe

CHIEF ex­ec­u­tives and top busi­ness own­ers, who gath­ered re­cently at the third edi­tion of the CEOS men­tor­ship class in Warri, Delta State, can­vassed di­ver­si­fi­ca­tion as path to eco­nomic growth.

They ar­gued that with the na­tion’s low an­nual gross do­mes­tic prod­uct (GDP), there is the need for busi­nesses and or­gan­i­sa­tions to take ac­tion, fol­low­ing their ex­pe­ri­ences on fair share of down­time in the econ­omy. The fa­cil­i­ta­tor and founder of the CEOS Men­tor­ship Class, Mama He­len Orit­se­jafor, who kicked off the quar­terly event, spoke on the theme, “Busi­ness Di­ver­si­fi­ca­tion in a Tur­bu­lent Econ­omy.” Ac­cord­ing to her, di­ver­si­fi­ca­tion is the strat­egy of in­vest­ing in a va­ri­ety of se­cu­ri­ties in or­der to lower the risk in­volved with putting money into few in­vest­ments. For the sake of di­ver­si­fi­ca­tion, she ad­vised busi­nesses not to fold up or shut down even in a tur­bu­lent econ­omy, as Nige­ria needs to find new sources of growth. Rather, she urged par­tic­i­pants to spread their cap­i­tal through var­i­ous in­vest­ments, by not re­ly­ing on a sin­gle in­vest­ment such that they can have a fall-back in the event of tur­bu­lence.

She iden­ti­fied seven Fs as keys that must be adopted for busi­ness growth, in­clud- ing “Faith, Foun­da­tion, Fam­ily, Friends, Fo­cus, Fi­nance, and Fun.”

“One of the most im­por­tant prin­ci­ples of in­vest­ing is that you have a di­ver­si­fied port­fo­lio. Pre­serv­ing cap­i­tal as a ben­e­fit of di­ver­si­fi­ca­tion is the teething time of all busi­nesses, as not all busi­nesses yield profit within two to three years and may have to wait longer to yield profit. All busi­ness own­ers must be will­ing to go through this. “Di­ver­si­fi­ca­tion must be a well thought out plan for an en­tity; and it can boost the growth of an or­gan­i­sa­tion lead­ing it to­wards wealth max­imi­sa­tion. It per­mits busi­nesses and com­pa­nies from tak­ing ac­tions or mak­ing de­ci­sions take could be de­clin­ing, it also helps to max­i­mize the use of po­ten­tially un­der­uti­lized re­sources.

“Oth­er­wise, di­ver­si­fy­ing into a new mar­ket seg­ment will de­mand for new skill set and lack of ex­per­tise in the new field will lead to a set­back in the busi­ness. If mis­man­aged, it can lead to a com­pany ex­pand­ing into many direc­tions at the same time.”

Dig­ni­taries present at the event were, CEO, Esi­ton In­te­grated Nige­ria Lim­ited, Mrs. He­len Esima Mene Ak­pata, and CEO Daveali En­ter­prises Nige­ria, Ms. Ig­benoba Og­bianuju Marigold amongst oth­ers.

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