Once a business is established, it allows the founder to consider alternative ways of doing business, this may refer to the product offering, systems, policies, or the process of optimization explains 041business columnist Gerald Pietersen.
For a business to remain relevant and competitive, it is fundamental to contemplate elements
of diversifying your business.
Let’s consider two examples:
Newspapers and books: there are so many that is out of print and migrated to the online space as
well as audio versions. The offerings are being made attractive and convenient, so it is only natural
to have a desire to adopt the new way of reading.
Shopping: Gone are the days that you have to get into transport to go to a supermarket. Online
shopping and delivery have become so simple.
These are just two examples where businesses diversified to remain competent, relevant, and cost-
effective.
Considering the same approach for your business, one would have to ask a few questions to guide the process. These are:
- Is the business sustainable enough to consider offering a wide range of services?
- Would I or the business have the capacity to initiate and lead the diversification?
- Is the market ready to engage with a different offering from the same company?
Out of the various types of diversification, it would be wise to consider this process for either
Horizontal diversification, which deals with expansion in products or services. This could be offering
a different line item or an extension on service (for tutoring, offer branded stationery, or self-study
test papers). The other option is Vertical diversification, which deals with integrating value chain
activities. The core focus here is optimization, or continuous improvement.
As much as this sounds like a mouthful, take your time to think through the need for this, then work
towards it in phases.
As the winds of change resound, allow yourself to play to its tunes. Who knows, it may bring some
beautiful melodies.
Gerald Pietersen‘s background is in training, HR and manufacturing with a strong foundation in the automotive sector. He is passionate about training and development. He owns a training consultancy offering training and development services to clients to help them grow and develop their human capital. He is also involved in content development for training, public speaking and travel. (LinkedIn)
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