The Art Of Diversification And How It Could Save Your Business

There’s an old saying that we follow religiously when it comes to business. Don’t put all your eggs in one basket. When you rely on just one aspect of your business, one mistake could destroy everything. One trip, and all your eggs are broken.

That’s why the smartest businesses have a diversification strategy. They make plans to expand their business and take in new markets. If one area fails, it’s okay, because you’ve set yourself up somewhere else. You may think this only applies to huge corporations. But, we’ll show you how you can apply these techniques to your own start up.

Look for related products
If your business relies solely on one product, this is dangerous territory. If demand for that product diminishes, you’ll have no eggs left! Look for a smarter way to work by expanding into related products. Look at the wider application of your offering. Could you provide training alongside the product? Is there a larger world that your business fits into?

Adapt
We always find that the best start-ups specialize in a niche market. They target and identify a core group that will concentrate their product. However, once you’ve done this, it’s important to adapt and move forwards. Always look for new ways to expand your customer base. Tweak your product to account for a larger audience as your grow. Don’t suffocate yourself by placing a ceiling on your customer base.

Move online
If you’re a business that traditionally deals with the offline world, it’s time to start looking online. Set up an online store and look to increase your profit share. Use platforms like Shopify, eBay or Etsy. Or, why not implement your own online store onto your website. With a little web development and a knowledge based authentication system in place, you’re good to go. You’ll sell more and diversify your audience.

Always look to the future
Trends and technology are moving faster now than ever before. As a business, it’s your job to keep up with them! It’s easier said than done, but always look to the future. We’ve seen more than our fair share of companies lose customers because they failed to move forward. Where is your industry heading? What are the future trends and habits likely to be? The earlier you spot them, the faster you can adapt and diversify.

New physical location
A key part of diversification is expanding your audience. Reach into new markets and diversify your customers. One way to do this is open up a new location. It could simply be the next city along, or it could be abroad. New markets are opening up all over the world. Diversify your location and you open your business up to an entirely new customer base.

With the rapid changes in technology and personal behavior, a one track business is no longer enough. Look at your business and figure out how you can diversify. Follow these steps and find more baskets for your eggs.

Photo by Pressmaster | Shutterstock