Are you choosing high growth or low growth?

How often do we make a conscious decision to put ourselves in the path of opportunity? Do you consider this when choosing your type of business or market segment?

I spent years in the investment world, and one thing I can tell you is that around 85% of your returns are determined by the asset class that you choose to allocate money towards. For example, if you choose stock, bonds, or real estate as one of your asset classes, your portfolio manager, company, track record and all the research will lend little towards your return. Ultimately it’s the inherent return of that asset class that determines the majority of what you return.

What does this have to do with business? You have to consider similar things when selecting a marketplace or industry for business opportunities. In the 80’s and 90’s, reading all the financial magazines made it evident that mutual funds were gaining popularity with the masses, making it apparent that a mutual fund would help us grow our investment firm, and it did immensely.

Our software company grew out of an awareness of the value desired and created by innovative software, and how it was becoming the backbone of businesses. We’re experiencing strong growth during tough times. Is it because we’re just that good at sales, or is it because the sector we chose to play in?

Do you watch what’s happening in the world and go with the flow of money and change? Have you put yourself in the path of the monumental “green” movement or phone applications?  How about all of this government spending taking place? If the sector you are in is not a high growth industry, and isn’t headed that direction, have you considered changing your direction?