Diversifying: What’s Right for Your Business?

Diversifying: What's Right for Your Business?

Diversifying your business is one of the top recommendations for creating a business that can survive through tough times.

If your business is more diverse, it won’t shrivel up if the tide starts to turn or the economy takes a hit. You won’t be relying on just one product or service to carry you through.

However, many people wonder about the best ways to diversify their business. Some methods are more suitable for certain types of business than others.

You need to think about the size of your business and how it operates before you decide how you want to diversify.

Find Other Ways to Use Your Assets or Resources

If your business has certain assets you use, there could be other ways to use them. For example, if you have office space with meeting rooms, renting out the rooms could be another way to use the space.

If you own a costume store, you can use the space, costumes and props that you have to run a party and events business.

You could consider renting out the equipment that you use when you don’t need it. If you can think creatively, you might be able to come up with some smart ideas.

Add Related Products

Diversifying: What's Right for Your Business?

You can likely think of some products that relate to your main product, which your customers would be interested in.

For example, if you sell bicycles, you might think about selling bicycle accessories. Or you could think about what other things cyclists might be interested in, such as other outdoor activities or other ways to keep fit.

This can help you come up with other products or services that your customers might want to buy. You can even ask them what they might be interested in purchasing.

Conduct a survey to find out what they like and what they wish they could find in one place.

Resell a Service or Product

Sometimes, it’s hard for you to offer a new product or service without having to take on new staff to fulfil it for you.

One way to get around this is to resell a service, instead of providing it directly. This involves selling a service as if it’s you providing it, but having it performed by someone else.

For an example, take a look at Web hosting is just one of the services you could resell. You can also consider things like SEO services or content writing.

Plus, it’s possible to use dropshipping to do a kind of reselling with a physical product.

Consider a New Location

A new location for your business is also a good way to diversify. If you run your business purely online, you could consider if a physical location could be worth it.

If you have a physical location, you should also set up online. You can consider opening a second location too, whether it’s across town or in another city.

Before you diversify your business, think about what you’re capable of. Not every business is suitable for a physical location or a new range of products.

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Poppy loves personal finance almost as much as she loves her two cats, Tif and Taz.
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