At times in business it is imperative to diversify so as to minimize risk. Achieving success may hinge on an entrepreneurs ability to offset risky decisions, ventures, or initiatives with more predictable outcomes.

A company should have some diversity to its activities. However, it can’t be only overly experimental as there are too many risks and failure will be inevitable. A balance between the pioneering spirit of the entrepreneur and the business acumen of a conservative is the perfect blend.

Levi Strauss and Company learned to their detriment that one can diversify too far. They went after the youth market to the point that they had stores filled with branded gear that was not selling globally, while the planet was enjoying a modern denim and jeans revival. They had not given enough attention to their traditional consumers who bought their staple product, 501 jeans.

To expand continually in the business world one has to be bold and yet have a realistic attitude about which goals are attainable. That is not to say that one shouldn’t dream! I advocate dreaming, and dreaming big. But being aware of the work it takes and setting goals to achieve your dream is very different from sitting on the couch and scratching a Lotto card. While every new venture is risky, achieving success is closer than ever before and diversifying to minimise risk may help you get there.