So you had a vision, a great idea that led to the start of your business. You grew that business and things are going well, but could things be better? You look around at what else is going on in the market, where there are gaps, where there are opportunities.
And ‘hey presto’, you have another great idea. You can diversify.
So what is diversification?
The actual definition is ‘to make or become more diverse or varied’. So it means change, being different, and opening new doors. So how do you know if it is right to diversify and what diversification is right for you?
Diversifying could be as straightforward as offering extra services alongside your existing products and services – adding value and new conversations to have with your existing customer base as well as new business opportunities. Or you could be looking at a totally new market place to either offer your existing products/services or introducing brand new offerings.
Diversification opens the door to growth, but if not done for the right reason, in the right way, with the right facts and figures it can be a costly mistake. You don’t want to undermine your existing revenue streams or detract from your brand if you are offering the diversified services under the same name. Don’t neglect your core business by focusing too much on new ventures. Keep your eye on the ball. A lot of thought and planning needs to go into change, in order to make it a good change.
But wow, what amazing changes they could be if you have:
- Done your market research thoroughly
- Produced a clear plan for development
- Tested the market
- Got a ‘ready to roll’ sales and marketing plan
- The resource to support and provide the new services/products