Small business owners can occasionally hit walls and have to ask themselves, 'where to next?' Making an endeavour a success is of course a huge challenge in its own right, but staying competitive over the long term can be increasingly difficult.
Consequently, having a plan in place to increase the scope of products, services and offerings is a must, but is it achievable? Well, the short answer is yes, but only if small business owners are ready and able to diversify their operations.
Thinking up innovative ideas for expansion is the first step in successfully diversifying.
Brainstorm ideas (and go digital)
So, how does the process of diversification start? Well, Inc contributor Susan Solovic suggested that it's important for small businesses to get all of their most creative minds in one room, and ensure that their collective wisdom is channelled into new, innovative ideas.
As a further simple starting point, Ms Solovic explained that exploring digital options is a must. Specifically, if your business isn't selling its products through e-commerce channels, consider entering the digital marketplace. While many small enterprise owners can be reticent, there are a host of options out there that can streamline the whole process.
For example, everything from Amazon Marketplace to eBay can be powerful tools for smaller entities looking to enter the digital world for the first time.
Go with your gut
It may sound like cliche advice, but following your gut instinct can be the best way to run with an idea. Even if you're very much at the start of the endeavour, keep track of any avenues that may open up for expansion, whether or not you can pursue them at that particular point. Ultimately, diversification can be about running with concepts, and consistently finding a sufficient niche.
"Business owners need to be confident and they need to be different. Right from the start I've always looked for new ways of growing my business, and I have a gut instinct about which opportunities to pursue," explained Zoe Jackson, a London business ambassador for Richard Branson's Virgin Pioneers initiative, as quoted by the Guardian.
If businesses can expand and diversify in the right way, they'll likely positively impact the bottom line.Nailing down the budget
A critical factor that will form the basis of any diversification efforts is funding. While it can be easy to identify some areas that could offer other revenue streams, having the capital in place to start such projects is a must.
Utilising small business accounting software such as CashManager by Accomplish can give you a better understanding of the finances of your entity, and help you better provision resources as you look at areas that could well be ripe for expansion.