Diversification and diversifying your business is probably one of the best ways to grow your business. Through diversification you get the chance to possibly target new markets, new audiences and so on. Here are a few ideas and suggestions as to how you could diversify your business.
1.Offer more things to more people. If you offer a few or even one product line to your customers/target audience then how about trying out and testing more product ranges and product lines. Diversify through offering more.
TOP TIP: Keep your eyes and ears open for any new opportunities that might just work for you.
2.Maximise your current business. Diversification doesn’t always have to be about bring new things in or adding new things, for example it could be about releasing some of the potential your business currently has to offer. So why not take a look at your business now, what potential has it got to offer that you are currently not taking advantage off.
TOP TIP: Plan for diversification. Diversifying can be stressful and costly if you let it get out of hand, so to save some of this stress and worry for a lot later date, plan for diversification, plan what you will offer, when, why, how much it will cost and so on.
How to fund you Diversification Plans
Diversifying doesn’t always have to be costly but here are a few ways you could and can fund your diversification plans and ideas:
1. Take advantage of local business grants.
2. Apply for a business loan.
3. Seek finance from a business angel/angel investor.
4. Ask friends and family for their financial help perhaps in return for a small stake in your business.
How to make diversification work for you and is diversification right for you?
Don’t be fooled, diversification and diversifying your business is not something that should be taken light heartedly. Here are a few things you should consider, go through and ask yourself to determine if you are ready to diversify your business are not.
1. Am I ready to take the risks associated with diversifying my business.
2. Do I have the funds in place to go into diversification, and do I have the funds to cover my self and the business if diversifying doesn’t help my business.
3. Have I conducted enough primary and secondary research to determine if my venture/s would be successful and profitable.
4. Have I considered all possible scenarios, worst case scenarios and so on, that could happen to me any my business if I diversify.
Remember that diversification and diversifying your business is not a key to success. You have to be cautious and prepared. You need to have researched the ins and outs, your market, your market place, your target markets and so on.
I hope you have found this article both useful and helpful. Good luck with whatever you choose to do I wish you every success.