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You are here: Home > Growth, Marketing & Branding > Diversification Growing the Business may not be as easy as it might appear!One question which has always had a tendency to baffle brains is "How do I best go about Growing my Business?"
It has taken some of the best paid managers in the country years to work out which would be best for their business. You only have to think of Marks & Spencer and the painful processes of change and re-change that they have gone through recently; now it looks as though it is starting to pay off with thier latest profit figures.
But what if you don't have the resources available to the likes of M & S, what can you do to grow your business? Growth & DirectionThere are only so many ways you can grow a business; - Win more market share from your existing catchment area
- Take over a competitor
- Merge with a competitor
- Merge with a complementary business
- Expand your catchment area
- Diversification
- Exporting
The trick with them all is not to throw the baby out with the bath water!
Firstly analyse your business and find the direction you should or want to be travelling in. The next step is formulating a strategy that gets you there. Of course, all the strategy planning in the world will not get you there unless you actually do something about it. Winning more business in your existing catchment areaThis may sound easy, but beleive me if you are residient in a small rural market town - winning more business from the existing population close to hand may not be that easy.
Much depends on the market needs and wants for what you are selling; another factor is the competition you face locally. You can always try widening your catchment area to include neighbouring towns and villages if you haven't already done that, but most small business owners do that first anyway.
So from the list above what are the most common ways to grow the business? DiversificationDiversification
Taking a close look at your business, what you do and how you do it can be a good starting point for finding products and services which can help you diversify. Again we are not talking about throwing the baby out with the bath water, but simply looking at other products or services that could complement your existing portfolio.
If things are really bad you may have ot look at drastic changes to you portfolio, but if the case is simply one of wanting to grow the business further, then "what complements" your existing portfolio can often be the right path to take. Doing this rarely involves you in a steep learning curve as complementary products and services usually dovetail with what you are doing now. This doesn't mean to say that you won't have to learn new things, it simply means that the new knowledge needed might not be such a dramitic step away from your existing knowledge. How do we find out more about help available for diversifying our business?Business Link can provide a Benchmarking Audit which will help you understand how you compare to other businesses in you sector or field of operations. The service is free and can help you work out what direction would be best for you.
Of course you can always contact us and we will be able to help, often inconjunction with Business Link. If you would like us to help you get started call us on 015395 31338. Using Internet Technologies to GrowThere are numerous businesses in the UK who could be using the Internet to grow. A major problem in the past has been the proliferation of Web Site designers who do not understand about running businesses, consequently the client has often finished up with an ineffective website.
The answer is to use a web developer that understands about running a business and who is skilled at Internet Marketing and the legislation needed for websites to be compliant with the law.
That may be easy to say I hear you thinking, but how do we know that a web developer is competent in these areas. Well one thing you could do is ask your local Business Link Advisor, they are usually fully aware the best providers in their areas. Another thing you could check on it whether the web developer is registed withtechnology Means Business. (TMB)
TMB is a Department of trade and Industry qualification which will give clients confidence in the skills and knowledge of small business needs when it comes to Information technology and Web Site Development.
ExportingExporting is not necessarily the first thing you think of to grow your business! But with today's technology at hand it is often as easy as selling in the UK if your portfolio is right for it.
There can be financial help and expertise on tap for those who want to find customers outside the UK.
There can be a number of factors which would not come into consideration if you were doing business with a customer in the UK, but rarely is there anything insurmountable. One thing which springs to mind is the situation that arose with one of the Cumbria Business Portal members, "Walkingsticks and Horncraft" who was sent a sculptured piece of horn to repair from Austrailia. When he had repaired it he went to send it back and found that it could not get through Australian Customs as it was classed as "Animal Products" and for that you needed a license. Andrew eventually sorted it out but it did cause extra work that had not been anticipated.
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