How many times have we suffered the feast and famine cycle as translators and interpreters? How many times have we wished to have a monthly earnings so we can be sure that we will make it to end of the month? Today I am talking about an strategy that will help us out to get steady earnings every month: diversification.

• What is diversification?

Diversification is a business development strategy allowing a company to enter additional lines of business that are different from the current products, services and markets.

In other words, diversification is the strategy through which we add new products or services to our portfolios in order to reduce business risks. Not all products or services are allowed, that is why we should implement an strategy to diversify.

For example, imagine that you a translator specialised in literary translations. You have been working with editorials for a while. They send you a translation, you translate and you send the translation back to them. That is it, right? However, what about adding an extra service which your clients might be interested in? If you train yourself and learn how to do the layout of the books your translate, these clients may be even more interested in your services. Further, this new service will bring a new source of income to your business.

• Why should translators diversify?

1. To add value to your business.
2. Not to rely all your income in a single business activity.
3. To promote the financial stability of your business.
4. To specialise within your fields of expertise.
5. To reduce the uncertainty of future cash flows.

Next week, I will talk about types of diversifications and how to implement an strategy to diversify the services that we offer.

Meanwhile, why don’t you tell me your thought on diversification? Have you ever diversified your business? Did it work?