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Will They Make It? Part Two - Focus: Page 2 of 2

There are times, of course, where a change of direction is needed.
Continuing to get clobbered in market A when there may be less
competition in market B certainly makes sense, but that switch has to
be done in a very focused fashion and almost always should leave the
old market behind. It is dangerous for an emerging company to keep its
toes in one market while it heads to another.

From the buyer's perspective, look for companies that have solutions
which solve a finite number of problems and that the company is focused
squarely on one market at a time. If it is a legitimate jack of all
trades type of company, you need to be aware of that upfront and make
that part of your risk assessment.