Is your company risky? Many founders believe their business is so safe that diversifying would increase risk. They feel like they control their business outcomes, even though their control has limits. All companies depend on the global economy, their industry, and the specific customers it serves.

Difficulties in the global economy make it more difficult for you and your customers to secure financing and keep customers. For instance, economic fear can transform what once seemed like valuable products into unnecessary expenses.

Likewise, a slowdown or change in best practices within your industry can hit your bottom line. Expenses or revenue misses at customers lead to churn. If your products no longer apply to evolving industry norms or if alternative solutions replace your product, your business will suffer.

It may seem safest to reinvest everything into your company – but that's concentration risk. You're betting your entire financial future on one asset. The world changes, industries evolve, and recessions happen. The best way to protect your wealth is to diversify before you need to.