Is it best to supply only one main product or service or do we need to have a broad range of offerings to survive the lean times?
With the uncertainty of the times this proved to be a lively discussion at the August First Tuesday Breakfast Forum, where the advantages and disadvantage of putting your irons in one fire vs. in a number of fires was explored. This forum was facilitated by Susie Vergers of Change Creators and was held at Cafe Elixir in Wanneroo.
It became evident that some business owners are diversifying by providing new types of products or services to their existing customers. Others have chosen to stay committed to specialising but are looking to different markets and/or geographical areas to safeguard their business from seasonal or cyclical dips.
Those who have expanded or diversified too quickly pointed out that it is important to ensure one’s efforts don’t dilute the core business or the main products or services offered. And there is often the possibility of confusing clients.
Some other dangers of diversification were highlighted, like when the gap widens between the separate elements of the business; or when costs can blow out with new product trials and marketing campaigns; and even the unforeseen challenges when a business expands into a new product or service or new market or geographical area. The discussion certainly provided some good food for thought.
If you want to know more about Change Creators or the First Tuesday Breakfast Forum call Liz Flatters at Staying in Touch who will put you in contact with Susie Vergers, Principal Consultant at Change Creators.