Tips for Diversifying Your Business
October 20, 2022
Every business owner can remember the point in the journey when their business became profitable. Equally as memorable is the path that got them there. It never comes without long hours, hard work, and trial by error that can seem hopeless at times. One you’re finally on the other side though, getting the taste of financial freedom feels great and empowering. And business owners often start looking ahead at what’s next. Diversifying your business opportunities is the perfect way to build the path to financial freedom while also fueling your entrepreneurial hunger. We’ve put together a few tips for best practices when considering how to best diversify your business.
Add Complementary Service Offerings for Your Existing Business
Often times, you can create additional service offerings to generate additional revenue from your existing customer base. In the case of Home Clean Heroes, we offer add-on services such as cleaning the inside of the refrigerator or oven, among others. If you are a lawn care business, you can consider the addition of raking/bagging leaves in the fall, or laying mulch in the spring to your service offerings. If you are in the restaurant space, consider adding either carry out, delivery or meal kits. Start with the types of questions you are getting from your current customers about services, and then evaluate what it would take in terms of labor, equipment or training to add it. You’ll also want to price carefully to ensure your margins stay intact.
Choose Complementary Brands to Your Existing Business
When thinking about new business opportunities, consider what will complement what you’re already doing. For example, if you’re in the home cleaning service industry, what other home service opportunities could your current customers benefit from? You could potentially pursue a business opportunity focused on carpet or window cleaning, or lawn care. If you’re in a seasonal business such as pool cleaning, you could look into business opportunities that would have a peak season in the pool cleaning off-season, such as a holiday lighting company or snow removal. This strategic seasonal approach would allow you to fully invest in and prioritize each business. The opportunities are endless, it really boils down to what you enjoy and what’s going to best fit with your existing business.
Invest in a Low Risk, High Reward Business
When selecting additional business opportunities, you want to go with ann option that will be secure and bring you success as quickly as possible. One way to make this happen is with a business that offers a recurring revenue business model. With home service brands such as Home Clean Heroes, people will always need a clean home on a regular basis, providing owners with the reliability of that steady revenue.
Choose a Business You’re Passionate About
If you’re looking to expand your business opportunities, you have the unique benefit of already knowing what you enjoy and are passionate about. Do you enjoy seeing how your service has changed customer’s lives? Do you like having a positive impact on the community? Build off of those qualities when seeking out your new business. If you have a passion for helping others, such as teaching a valuable skill like swim lessons, you could diversify with something also geared towards helping children such as a tutoring program or childcare.
Make Sure It’s the Right Time
It’s easy to get caught up in the high of business ownership with your initial business venture, but make sure you heavily weigh the pros and cons of jumping into a new opportunity so that you don’t bite off more than you can chew. If your business is strong and the processes are refined with a solid team to support the business, it could be the perfect time to start building off of that success by pursuing something new.
If you have questions about diversifying your business and finding out if it’s time to turn to a new chapter in your career, give us a call at 844-949-4376