Bad Credit Business Tips: Should you Expand the Services you Offer?
One of the ways that small businesses are able to effectively compete is by owning a niche and providing the best service and expertise within it. This can help them retain a share of their market that can’t be touched by broader service providers, but it can potentially limit their growth if there is a limited market size for the service that they provide. Without sacrificing their competitive advantage represented by specialization, what can small business owners due in order to diversify their income streams and create the revenue needed for growth?
What services complement the services that you already provide? The first step towards identifying potential avenues for growth is understanding what products or services are consumed in conjunction with those that you already offer. For example, a business that offers custom made bouquets may also consider designing centerpieces, or providing products that someone who would order a bouquet might be looking for, such as boxes of chocolates. Don’t just guess what your customers are looking for to go with your products; ask them yourself through surveys and other forms of performing market research. It pays to be informed on our market before investing any money in a new product line.
Think about creating convenience for your customers by eliminating steps. If you are able to offer your customers a more convenient experience surrounding whatever product you offer, then why wouldn’t they be interested in trying out your new offerings? Generally, concepts such as “cutting out the middle man” and “one stop shops” appeal to modern consumers, so if you are able to successfully eliminate the need for multiple steps in your process, then that bodes well for your business.
Identify the strength of surrounding businesses. If you are planning on broadening the range of services your business will be able to provide for your customers, then you should certainly evaluate the strength of the competition you will create for yourself. If your nearest competitor for complementary services is two towns away, then odds are good that by eliminating the need to go to their shop after yours, you will be able to win over a large portion of that business. Planning your move carefully is the key to ensuring its success.
Photo Credit to Western Area Power on Flickr