Can a very small business be diversified?

I mean "very small" in the sense of profit per year.

The obvious answer seems to be "yes, if a significant part of the business is conducted online." (However, you might disagree, or you might agree but believe that something important has been omitted. Feel free to reply to this thread in either case.)

Following this train of thought, we might backtrack and ask: is diversification desirable?

From the point of view of an investor, diversification is a way to reduce risk, but the extreme case of ultra-diversification reduces the chance of earning a high reward for selective, tactical concentration in key areas. For an individual business, the extreme case of ultra-diversification creates a problem for managers who want to manage the business, and for investors who want to understand the business.