Although there’s the odd exception to this rule, the vast majority of businesses start expanding as a response to some dearth in the market. It might be that they envisage themselves as being able to undercut prices or improve upon quality, or else that they have a new invention entirely.
Whatever the case, it’s likely their product or service is rather niche, with a fixed appeal and a particular audience. Once this has been conquered, it leaves them with a certain conundrum: how to start expanding and improve upon their allure.
The obvious answer is to diversify, but when you have a set skillset and a single area of specialist knowledge, this can seem like a rather risky endeavour, so is it really necessary?
Can you grow your business without diversifying?
The primary reason for a commercial enterprise to consider diversifying is to grow its audience and increase its profits, and where successful, such goals are certainly attainable. But is diversification the only way to go about it?
The answer is a complex one. Yes, there are other ways to do it – cutting your prices, pushing your marketing, forming strategic partnerships – but all eventually lead to the same end: increasing your appeal by broadening it.
The trick, of course, is not to wander too far from the original. When we talk about diversification, what we don’t mean is changing your product completely. We’re not suggesting your digital marketing company suddenly starts selling high-end clothing, but rather that you add a few more strings to your bow: web design, perhaps, or video production.
But how do you go about doing that?
How do you diversify an already successful endeavour?
When it comes to diversifying an already successful endeavour, there are so many ways to do it, but here are just a few tips and tricks to help you…
Respond to customer feedback
Adding new products and services to an already existing set-up always carries some risk, but one of the simplest ways to ensure success is by taking on board customer feedback. You’ll often see a trend emerging as to what people want, whether it’s a new take on an existing popular item or something completely different but complementary, like Buzz Bingo installing slots arcades within their bingo halls. Listen to what’s being said and you won’t go far wrong.
Expand your ranges
Another way to diversify your business is to look at what works and expand upon it. Pay attention to what your customers really seize upon, whether it’s a particular product or a certain service, and then think of ways you could improve upon it. Whether it’s adding new colours or sizes to a clothing range or selling make-up products to complete the look, think of other things your customers might need and you can provide. Apple does this especially well, with everything from smartphones to desktops to watches available.
Employ the right people
Perhaps the most important thing to bear in mind if you decide to diversify is the new skillset that will be required. The easiest way to access this is by employing the right people, so keep an eye out for those who can help your company to grow. Choose wisely, and you’ll barely even notice the transition from niche provider to more mainstream competitor.
Isn’t it time you put diversification on the table?