A Guide to Diversification for Weybridge Businesses
How well has your business done in the last five years? Have you managed to just scrape through, coasted along, or done better than ever? With stiff competition from the online sector, it may no longer be viable for your Weybridge business to continue with its current model. When this happens, you need to consider diversification.
Why Diversify Your Local Business?
Business diversification comes from four fundamental desires. Firstly, it is a method by which a company can gain more revenue, bringing in new products or services for its clients. Secondly, it brings added financial security. With more on offer, a business is not subject to the fluctuation in demand for that product or service and as a result, has less economic risk. Imagine you supply granite kitchen counters and they suddenly go out of fashion. A company that sells a range would still have revenue by selling other, popular types.
Thirdly, businesses may be forced into diversification if their core business or product does decline. However, there is no shame or loss in this. Businesses should evolve to the changing needs of the customer.
Lastly, businesses may diversify because they want to explore partnerships which can increase both revenue and provide economic stability. An example of this is the iGaming industry and its major operators, who aim to provide the best casino online experience. In the early days of this format, it was not known if the industry would sustain its popularity. Thus, table game and slot providers diversified into other mediums such as bingo, sports books and the provision of information such as football betting tips. This has grown the online industry and increased competition.
Different Ways to Diversify
There are plenty of different ways you can diversify your Weybridge-based business. However unique they are, they may fall under one of three themes. The first is being able to adapt a current service. You may do this to improve it or to cater for a new clientele or demographic. For example, a female-only salon may diversify into providing male barber services.
Another idea is to adapt how you provide a service or product, without changing the core product itself. For example, restaurants may diversify by providing takeaway deliveries through apps.
The third is by forming links with new businesses or services to improve your provision. For example, a company that provides online marketing services may link up with a graphic design company to offer an all-in solution. Many of these will also overlap, so you may be hitting two or all three methods with just one change.
Trying Diversification
For diversification to work, it does need some discussion and testing. Start by speaking to your staff and customers about what people are asking for. Do they need the diversification you are suggesting and will they use it? They may even come up with something better than your initial idea.
From here, test the market before pouring time and funds into it. You could try new services or deliveries. Software firms often do this with programmes in beta testing, so don’t be afraid to do the same with customers. Let them try things out and see if the product is something they want.
Even if the revenue is not your goal, every business needs more stability. Consider diversifying your Weybridge business and putting a plan in place. It may just see you grow in ways you never could have imagined.