The pandemic has shown just how many businesses are capable of diversifying what they do. Whether it is a formally office-based business now working fully remotely or a restaurant business that has adapted to do takeout when they didn’t before. By changing, doing things differently, and seizing some new opportunities, it makes it more possible for all types of businesses to not only survive, but to thrive.
Diversifying what a business can involve some thinking outside of the box and making some changes that you would have never imagined before. But by doing things differently, it can help to take your business to the next level. When you look at successful businesses and brands, such as Volvo, for example, you can see how they took their car manufacturing and engine manufacturing to create the Volvo Penta for maritime use. Although it plays to their strengths, it involves branching out to a whole new sector that can help the business to grow.
If you’re thinking of diversifying what your business does, then here are some ideas and ways that you can diversify your business.
Ways to diversify
- Think about what you currently do or currently offer. Can you change the service in some way to make it appeal to more people, such as the example of restaurants adapting to do a takeout menu when they never did previously?
- Would you be able to change what you do or the service that you offer in a small way, without having to do something massively different (again, like the Volvo example)?
- Who is your current audience? How could you reach a new audience while still keeping your existing customers?
- Think about other businesses, whether local to you or on a national or global scale; could you collaborate on something to offer something really nice or unique?
Test and trial it out
Like you will no doubt do with other areas of your business, there are things that need to be planned out. First of all, there will be costs involved, as well as looking at the risks to see if there are any complications. For small businesses, budgets can be tight and things like this need to be looked at in close detail. For instance, by diversifying one element of what you do could be better than a complete overhaul. This could be ‘safer’ than leaping into something completely unknown or new to your business.
You can minimize the risks of what you do when you plan to diversify by getting a lot of feedback. This could be from your team as well as existing customers to gain some insight into new ideas and changes to existing offerings. You could also look to run a test or trial of your new idea, without the commitment of having to deal with suppliers or anything long term. See how it is received and then go from there. If it works, then great. If it doesn’t, you won’t have invested too much time or money into it anyway.