2016-12-09 00:00:00 Growing a Business English Have you considered diversifying your small business's product and service offerings? Here are four ways to start diversifying. https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/03/Restaurant-employees-serve-food-standing-by-business-offerings-and-specials.jpg https://quickbooks.intuit.com/ca/resources/growing-business/4-ways-to-diversify-your-business-offerings/ 4 Ways to Diversify Your Business Offerings

4 Ways to Diversify Your Business Offerings

2 min read

Diversifying your business offerings can help attract new customers and retain existing ones, which can boost sales. It also helps spread risk across your business by not relying on one particular product or market. When developing a strategy to diversify your business offerings, consider how you can enhance your customers’ shopping experience.

Modify or Add Existing Products and Services

Adapt your current product and service offerings to appeal to an additional target market. If your small business targets novice customers, modify your existing offerings to appeal to experts. For example, if you own a small business that sells basic drones to recreational users, add a range with advanced features that target commercial users. Customers in another target market often want different features, so you don’t need to be overly concerned about prices undercutting your other products and services; price actually helps differentiate between budget and premium offerings.

Add a Complementary Product or Service

Introduce a complementary product or service to your business’s existing offerings to attract new customers. Offering complementary products that interrelate with existing products help create demand for each other. For example, if you own a small accounting business that sells bookkeeping software, you could introduce training workshops that demonstrate how to use your product effectively. Complementary products and services help retain customers, who are more inclined to buy multiple products and services from your business. It also allows you to bundle products together to provide a discount, helping customers feel that they received a good deal.

Offer Your Products and Services Overseas

Sell your products overseas to diversify your business offerings into new markets. Thanks to the internet and drop shipping, it is relatively easy to enter a foreign market. Before launching your product line overseas, thoroughly research the market to determine if there is adequate demand. Familiarize yourself with the local regulations in the markets where you are selling your products. Services are ideal to sell in an overseas market where specific skills are required. For example, if you are a Canadian freelance writer who is proficient in French, consider offering your services to clients overseas that need content written in French.

Sell Your Offerings Online and Through a Physical Store

Offer your products and services online and at a brick-and-mortar location to extend their reach. If you sell your products at a physical store, offer excess inventory online. You could set up your own e-commerce site or sell through eBay and Amazon.

If your small business sells online only, you could open a brick-and-mortar store to sell products that consumers prefer to touch, feel and smell, or are expensive. For example, if you own an online jewelry store, you could open a physical location to sell more expensive items that allow customers to try a piece on to see how it looks. Products that are technical or that require a demonstration also often sell better at a physical store.

Offer promotions to facilitate customers purchasing through other distribution channels. For example, in-store customers could receive a 10 percent discount for items they purchase online.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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