The market can be a fickle monster. One year, your business is riding high on a steady cash flow, just barely meeting demand with your supply. The next year, you’re up to your neck in receipts and hopefully making ends meet.
There is only one sure-fire way to buck the bull and the bear. Diversify. Regardless of your type of business, no matter how large your organization, and no matter how widespread your geographical area.
There are a variety of ways you can diversify your operations to ensure you never come face to face with a bear unprepared.
Diversification strategy number one: get help. Before you lay plans to increase your market share, join forces with people who have been there before. International business consultants can give you new perspectives on which direction to take, and more importantly, how to take it.
There are plenty of reasons to hire a consultancy firm. Experience is a big one. You’ll also get their connections and networking potential, and you won’t have to pay into their benefits. Plus, consultants have your best interests in mind, so you know you’ll get the service you need.
Adapt to Survive
Once you have those consultants on your shoulder, you’re ready for some restructuring. Many businesses find success bridging into alternative markets that already exist. For example, if your construction company normally builds homes or other structures, why not put your bid in to deconstruct former military bases that are being decommissioned due to the BRAC process?
Here’s where your consultants come in handy. If you don’t have experience in government work, it’s hard to understand the steps you need to take. A firm with that type of government contracting experience is paramount to your success. But don’t get a firm that only specializes in this type of work; the more diversified your consultancy firm is, the better you’ll manage your own company’s diversification.
Expand Your Niche
In addition to finding other markets to enter, you could create your own market where none existed before. For example, let’s say you operate a printing press that traditionally caters to newspapers and books. With the help of your consultants, you may discover that there’s potential for a new market niche: the average homeowner who wants to print unique, personalized posters and photo albums.
It’s a different method of business, to aggregate many smaller orders for prints instead of one or two large orders, but it could be financially viable if you approach it the right way.
Keep in mind that this type of diversification is best attempted while you’re still maintaining that original revenue stream. In other words, don’t dismantle your operations just to move into a different market without doing any research or getting any consultations beforehand.