How to ensure the survival of your business in and out of season

I’m sure you’ve all heard the old saying, “Don’t put all your eggs in one basket.”  For many small businesses, it’s advice that should be taken quite seriously--especially in this digital age when product life cycles and customer demands change rather too quickly. Usually a business with one product or service is prone to shutting down compared to businesses with more services or products.

You don’t want that to happen to your small business. The answer to this is diversification, You need to strap the thinking cap on tightly for this one, and tap the most creative minds in your small business. Sounds easy? Think again. Diversification is something that is much more easily offered than implemented. So you will need to think way out of your to achieve it.

So here is how you can successfully diversify your:

1. Adapt. Tweak your product or service so it appeals to a new group of consumers or users. If you have an expensive product or service, consider a less-expensive version. You need to be careful that you don’t undercut yourself and land yourself into losses but instead increase profit.

1. Find related products. Are there products that go along with what you sell or do that your customers or clients purchase from a different vendor? Perhaps there are training materials that you can offer as well. For example, a jewelry business can diversify into making hair accessories.

3. Offer an integrated solution. This flows from the previous idea, and the basic question you need to ask yourself and your team is, “Can we do more?” This might be anything: training, apps, additional gear, servicing, the possibilities are endless.

4. Find out what’s next. Are technological changes beginning to erode your base? Don’t be the last in your industry to sense where things are going. Devote part of your business to meeting the needs of the “early adopters,” and then you’ll be ready if a major shift occurs.

5. Sell online. If you don’t offer your products over the Internet, add an e-commerce element to your website. If you already sell online, sell online more. Look at the various “marketplace” programs like OLX and Amazon. Consider opening an e-store, especially if you have miscellaneous overstock items in your warehouse. Rather than marking them down to next to nothing and undercutting new products, sell them online.

6. Open another location. If you’re exclusively online, consider a physical location. If you have one physical location, consider opening a second one.

In conclusion, diversify your business can save you from huge losses and also gives you a chance to expand your small business and in the long run ensuring its mortality.

By Sheba Joy

Intern

Kyusa