Betting your business on porn - is that a solid strategy?

Ed Marsh | Sep 10, 2013

Not the oldest profession...

Commenting on the bleak news in Friday's market moving employment report, JP Morgan economist Michael Feroli wrote "Some reports attribute this to a temporary work stoppage in the adult-film business." - Barron's "Up & Down Wall Street" 9 Sept 13

Taken to its logical conclusion, then:global business development market diversification
  1. If your business is a B2B Manufacturer your customers' buying decisions and timeline will impact your business growth
  2. Most American businesses adjust budgets and tailor expenditures on a quarterly basis against actual revenue and updated forecasts
  3. Those forecasts almost always incorporate key government data like the jobs report
  4. If the key jobs report is down as the 3rd quarter wraps up, CY 4th quarter spending might be trimmed in response
  5. Fear of an AIDs outbreak among porn stars could reduce your 4th quarter revenue accordingly
Uncomfortable basing business growth forecasts on such frivolous statistics?  Certainly this is a bit of an aggressive extrapolation - but the point is completely valid.  

The US domestic market is large and diverse - but it is also subject to cycles and unpredictable elements.  And your business will benefit and suffer accordingly...regardless of how superb your management.

Diversification and resilience

Lately you've probably been reading about the currency woes of emerging markets and the BRICs.  You hear less about strong pockets of international market strength, though.  You also don't hear as much about the rapid growth even in supposedly "distressed" markets.  India, after all, will probably only grow at 5.5% this year.  What's that, nearly 3 times the growth rate of the US?

And while some markets are stagnant, or slowing, others are vibrant and growing.  Is it reasonable to predict what will happen in any given market at any time?  Can you predict what the Fed will do at it's next meeting?  See what I mean?

What you can do is strategically distribute your business activities across several geographically and geopolitically unrelated markets - which all have favorable demographic trends in support your growth in demand for your product over the next 10 years.

Export?  Seriously?  Not your product?

Here's another factoid from the same issue of Barron's.  "Scoff all you want at salty canned meats with a gelatinous glaze, but SPAM is an imported American delicacy in countries from Korea to the Philippines."

Is your product better than Spam?  That's what I figured....you too can successfully export!

So instead of subjecting your business success to something as abstruse as propensity of adult entertainers to use prophylactics, rather commit to a strategy of proactive prophylaxis for your business.  

Put the myths and worries aside long enough to investigate a deliberate global business development program based on market diversification.

We call it simply #SellMoreThere.

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image credit - SodaHead