When making investments, advisors emphasize the importance of a diversified portfolio. Instead of putting the fate of your retirement fund on the success of one stock, they encourage making a series of smaller investments into different entities.
This principle also applies to the success of your business.
Instead of relying on one product or service for revenue, find a way to diversify your business. This will allow you to upsell current customers as well as bring in new business. See which of these strategies will work for you.
Take your product to the next level
When you are well known in a specific niche, adding new channels to how you service your clients may be better than an all-together new offering. Integrating new technologies makes this fairly simple. If you own a restaurant, start using a third party delivery service. If you have a brick and mortar store, add ecommerce to your website. If you sell home security systems, make them available for offices as well. Find a way to go deeper into what you already do.
Find related products
Adding related items allows for more streams of income and can meet needs complimentary to what you already sell. Chances are, your customer is already purchasing these products from another vendor. So, you might as well make it available to buy from you.
Imagine. You own a photography studio and charge clients for your services. What else might they want to buy after a photoshoot? Prints? Frames? Figure out what your customers are already buying to compliment your product and add it to your lineup.
Use your resources in a different way
You already own assets for running your business. This could include a building, supplies, or professional equipment. Another way to diversify your business is to change up the use of what you already have.
A restaurant that serves breakfast and lunch wants to bring in some extra income. They decide to rent out space for private events in the evening. A construction company decides to rent out equipment that they aren’t currently using. A popular vintage record shop starts hosting concerts on the weekends. All of these options provide extra revenue to the business owners using resources that they already have.
There are different strategies to use when deciding how to diversify your business. No matter which you decide to use, ensure that the new offerings create value for the customer.