Is It Time To Diversify Your Business?
Diversification is when a business brings out a new product/service or targets a new market. It can be a great way to bring extra revenue to your business, however diversifying can also be a lot of extra work and may require some expensive investment. Here are just several signs that diversifying could be a good move for your business.
You’re grown bored of doing the same thing
Churning out the exact same product or service for years can get boring, no matter how successful that product or service is. Diversifying could help you to fall in love with your business again by bringing some exciting change. Many entrepreneurs are naturally restless and need to be constantly trying new things to give them that sense of reward.
You’ve realised your product/service is too niche
You may have discovered that your product/service is too niche to develop a steady stream of customers. If you’re struggling to find people that have an interest in your product or service, diversifying could help you to expand your market and get more customers. For instance, if you sell pianos, you could also consider selling other instruments or branching out into services such as piano lessons or piano tuning.
You’ve spotted new ways to make money
It’s possible that you may have simply found a new gap in the market that you want to exploit. Or perhaps there’s a product or service that’s in high demand right now and you want to take advantage of this. Many successful entrepreneurs such as Aubrey Ferrao have done this in the past, diversifying from exclusively real estate to chartering jets. Just make sure that you have done thorough research so that this new product/service is certain to be profitable.
Customers are asking for other products/services that you don’t supply
If customers are asking for products/service that you don’t supply, this could show a clear demand for this product or service – and it could therefore be worth diversifying to include this product or service in your inventory. Customers may even be asking for a product that you already sell, but in a different form. For instance, Lucky Charms realised that customers were asking for marshmallows-only bags of their cereal and so started selling just marshmallows this year.
You’re ready for a challenge
Diversifying your business can be achievable at any stage so long as you have the drive and commitment to make it work. If you’re raring for your next challenge, it may be a clear sign that you’re ready to diversify. Just make sure that you’re taking calculated risks and not just throwing yourself into new challenges without knowing what you’re doing – hiring advisors and doing your own personal research will ensure that you’re well equipped.
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