demands You'll need to be clear about development costs and what your alternatives are if any delay occurs in development. Wherever possible, try to control risk by securing orders or commitments up front. While diversification can pose some risks - such as costly delays and mistakes owing to a lack of knowledge or expertise in the new area you're looking to cover - it can also limit the impact of changes in the market. In simple terms, if you supply one product or service and it falls out of favour with customers, it leaves you very exposed. If you have two or more products or services and the sales of one of these drop, at least there will be revenue coming into the business through the other. However, if you diversify too quickly, then you could lose track or dilute your core product or service. Generally speaking, diversifying with similar products or services and selling them to a familiar customer base is less risky than creating a product for a completely new market. You can also expand your business by joining forces with another business. While this can create more shared decision-making and possible management and staff issues to resolve, there can be clear advantages. Successful co-operation can deliver: more resources sharing of the managerial load larger skills and talent base bigger pool of contacts increase in markets diversification and organic growth using increased resources reduced commercial risk Partnerships and joint ventures Partnerships and joint ventures can offer both partners