Benefits of having a line of business

[Augusta]

I know we often times want to experiment with different lines of business. but sometimes it aid in quick collapse of the business. This is because you are almost doing everything at the same time. when this happens you don't get a grip at any and this quicken failure. So having a line of business comes with great benefits that overwhelm being a jack of all trades. The below are the benefits.

Specialization: Having a line of business will help you do better as you would concentrate on just this one and you become great at it.

Effective result: This is another benefit as you would have been able to grab all that's needed to progress with the business and you would have a better result with the business at the end of the day.

Better understanding of the business: With just one line of business you would have been able to understand the business better. As you have just one of it to study and come to know how to run it better.

Efficiency: one thing about having a line of business is that it makes one efficient at it, because you would only be having to deal with the business and seeing to it everyday will bring efficiency.


What do you think?

 

[Kingsley]

I very much agree with you, there is indeed nothing that gives more advantage than working or doing a particular thing over a period of time, this thus truly improves one's skills and expertise. If we consider the David richarcado comparison and Adams Smith's Absolute advantage principles we will see that they all pointed towards specialization as a major benefit or doing a particular thing over time as that actually improves one's skills and saves time on the job.

I have come to agree that we must always try to spend more time in a line of business because by so doing we would be able to gather the requisite knowledge and expertise that is needed for us to excel in that area of business and we will be able to also provide mentorship for others that may be facing one form of challenge or another in that same line of business.

I could remember when I was into the sale of computer system software, this line of business gave me somuch opportunity to learn more and grasps alot of information as touching computer repairs, And software development. Infact up till now am still benefiting from the knowledge I acquired because I stayed in that line of business for long.

 

[btaliat]

I won't blame those that always have more than one source of income. Their reasons are truly justifiable- no one knows the real business that will end up make us rich. But as plausible as their reasons, there is no need to have more than one source of business. It does show that one is not so sure of what to do. Except of course, there is successful management of the other ones just as we see in the case of Elon Musk. But someone like Steve Jobs, Bill Gates etc focus more on only one source of income for many reasons.

The fact that one will be well known for what one chooses to do. And there won't be too long before the person has a brand name is the number one reason. Most time, when we have brand name, we can easily be commanding the market and even turn to monopolist since we will be the best ok what we do. Ingaine Ferrari company banning Justin Bieber from buying their product-it is because they are the best in that line.

In essence, if one has more knowledge in other areas of business or there is need for diversification, one may consider having different other business lines.

 

[Carpon]

Yes indeed it is very good that you have a specific line of business which you are surely able to function properly in.

As you said you avoid making mistakes and having so many crashing businesses.

But I think at times it may be good to experiment on different fields. That could be what will help you find out and discover what your line is. At times you need to allow experience teach you because it is the best teacher. You may not know what best fits you unless you try it out and some times your first trial may be a pointer towards what actually your 'line' is.

But just as you inferred it is very good that one knows his best like and goes after it without mixing a lot of things and attempting other businesses as if it was a trial and error experiment.

 

[Ramolak19]

For firms, there are many advantages to having a line of business. Spreading income streams across many products or services firstly permits diversification and reduces risk. Furthermore, it offers prospects for development and penetration into novel markets. Thirdly, it helps the business to make the most of its current assets and knowledge in order to increase productivity. Furthermore, establishing a firm helps develop a known brand and a devoted clientele. In the end, it promotes profitability and stability over the long run.