How to diversify your business
Your business might just be selling one product and still be doing great, but what happens if that product goes out of fashion or becomes obsolete? Your business will collapse.
The best way to prevent this is by diversifying your business. Doing more than one thing means that if one part of the business stops making money it will not collapse because there will be other areas of the business which will keep it going.
Change your current products
Sometimes diversification can be done through something as simple as changing your current products to offer different versions to different audiences. Look at Apple and their iPhone 6 and iPhone 6 Plus phone models. They are essentially the same product, but have different sized screens to appeal to different customers’ needs.
Sell related products
This is another easy and obvious option. If a customer buys a product from you it’s safe to assume that they might also want to buy related products. Going back to the iPhone example again, Apple don’t only sell the phones. They also sell phone cases, earphones, and mains adapters to charge the iPhone.
Offer related services
It’s not only related products you can sell beside your main items, you can look to adding services too. Think about things like apps, training, maintenance services, etc. which can add to your products.
Use the internet
If you don’t already have an online store, you are missing out. People are spending more money than ever on online shopping so opening an online store could add a nice new stream of income for your business.
Open a brick and mortar store (or a second one)
Have you been online-only so far? Why not try to find new customers on the high street by opening a physical store. You might attract customers who are not so into online shopping.
If you already have a physical store which is doing well you could open another store.
Can you afford it?
Before you put any diversification plans in action you need to consider whether you have the funds to grow in a new direction while still continuing to do what you already do.
Make sure you are still managing your business properly as your expand
As well as making sure you have enough money you need to ensure that you have a plan in place to keep the business in its existing form running while you move into new areas.
Make changes that make sense
When you diversify you should add products or services which actually make sense in relation to what the business already does.
If you do something completely different from what the business is currently doing you will only confuse your customers and you will undo all the branding and marketing work you have already done.