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Diversify To Attract New Business And Prevent The Recession From Biting
By | December 29, 2008
If your business is starting to see the effects of the recession and it is beginning to bite into your profits, that may mean that you have too many of your eggs in one basket and may need to diversify. It may be that you are reliant on one large customer or one main product or service line. Perhaps you cater to one target market. Relying too heavily on one performer may hit your revenues. In order to see your business through this recession, consider what area or areas could be the most beneficial to move into.
If you have a few large customers who are carrying your business, you need to find ways to bring in new customers. Consider incentives to those main customers for every referral that comes in and spends a specific amount of money. Reward them with a deal on a new product that you are stocking or service that you are providing. For example, giving a free service for every ten referrals that they bring in. Brainstorm for creative ways to cater to these patrons who probably, by association, have business colleagues, friends and family that are capable of becoming large purchasers also. Create a two for the price of one coupon to be used for new customers or for existing patrons to bring a friend. Offer incentive for first time buyers and special promotions for new clients who subscribe to your services or make purchases of a certain dollar amount. Offer a free gift for signing up for services or for a first time purchase.
One main product or service can limit your business. If your product or service is an expendable one to your patrons because it is not a necessity, you may be in trouble. Try adding compatible products and services that will compliment the lines you already carry and provide. Consider incorporating necessary products and services to boost sales. Contract with vendors to acquire “exclusives” on hot items. The possibilities are endless and are well worth implementing if you are reliant on one or more specific products or services to see you through these slow times.
Another potential problem may be that your business is catering to a specific market. There are all different types of people with all kinds of needs and desires. Why limit your company to only a small part of the market share. A collector’s shop that furnishes patrons with the opportunity to purchase collegiate apparel may benefit from adding racing memorabilia and clothing to draw in a different market. A tuxedo rental business may well benefit by adding women’s formal wear into their boutique. Perhaps you own a residential cleaning service that could incorporate commercial cleaning services to attract a new type of customer.
Consider the possibilities by making an assessment of the products or services that you already provide and find creative ways to market them to a different clientele, especially those that are still buying. A hair salon that normally attracts mature women could benefit from hiring a stylist that is current on hairstyles that appeal to a youthful market.
There are many ways to diversify your business to accommodate a variety of customers and maximize profits. All you need to do is put on your thinking cap and go to work to make the changes necessary to expand you business as well as your financial horizons and you may well find that a few small changes can have a huge impact on your bottom line.
Topics: Recession |
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