Why Diversify your business?
Putting all your eggs in one basket seems to be the safest bet, but drop that basket and you’ll see all your eggs crack. The same applies to a business, having one sole focus might seem like the attractive and safer option however as the value of your single business rises so does the risk associated with it.
Diversification is not easy, many companies have tried and failed but diversification is possible and results in healthy business growth and creates various revenue streams.
1. Understand the Value you bring
As a business you not only provide a service, you provide an experience. The combination of these two are the value that you bring to the table. Understanding your value to your customers and consumers is key to diversifying your business. Once you’ve gotten a grasp on what you can provide you have to ask yourself a few questions before you decide to diversify.
Can we change up how we provide the same service?
Has a new audience or audience segment popped up that we can sell our services to?
Can we partner up with other businesses to provide better services?
2. Changing up the way you provide your service
Due to the current pandemic, businesses have opted more towards the takeout and delivery services. Another option to take into consideration would be taking your business door to door or have mobile operations.
The flexibility that you offer your services can quickly become attractive as we as humans have evolved into creatures of comfort and convenience.
3. Adjusting to Change
Your business may not be as flexible as you like, for example food that you deliver might not be as good when delivered and the quality would appear to drop. You would either have to discontinue that product to preserve reputation or create a new product that would deliver up to standard quality.
One example would be restaurants offering frozen variants of their products which consumers can easily reheat on their own and still have that quality of meal that they would expect from their business.
4. Addressing the New Needs
These trying times have created gaps in demands of the customers and businesses are scrambling to tackle these. One such need that has risen because of Covid-19 has been the holistic health industry. Not only are people investing on personal health through diet and exercise, they are looking for other products that can boost their immune system and make them feel healthier.
Another industry that has seen increased demands are that of leisure and entertainment. With most places shut down, the creation of valuable content online has been a life saver for some consumers. You can capitalize on this and become a well established brand by increasing your brand visibility and reputation through online media.
5. Try to Reach a New Audience
Heavy lockdowns across the world has lead to people having been shut in with a lot of free time on their hands. Their hand-held devices have become their best friends and now that lockdowns have been easing people are finding themselves more open to new experiences.
Reaching this new audience is key to diversifying your business. Provide services that are interactive and tactile to bring something that breaks the phone bearing norm.
Diversifying your business might be scary, but it is also an exciting way to rejuvenate your business and bring in more customers.
Though it might seem contradictory, these tough times provide the best opportunity to diversify your business. As long as you understand what you can promise and deliver, your audience and the opportunities that are available to you – you can create more stable sources of income.