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There is nothing that says a label can't have different genres. The problem is with building the label up. Getting distribution is hard for a label that has a bunch of types of music. Having a successful rock album doesn't mean you will have a successful rap album. When it comes to continuing the label for the future, it's harder to keep promoting artists of different genres equally. If you have a metal label that has three bands you can use one show to promote all of the bands. If you have a metal band, a country band, and a rapper, you wont be able to promote those as easily. This will start to eat into your budget. Also if you start favoring one genre over the other, the artists will get mad.
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