The business world, largely, subscribes to the consensus that most companies should specialize, whether those companies present products or services. However, it is my opinion that this idea is not applicable to every business. For, to specialize too tightly can be the proverbial "kiss of death" for some businesses, depending on their product, service or clientele. [---SIDEBAR---] One business that supports my theory is the lawn care business. Now, most individuals would assume that the lawn care business is a seasonal one, lending itself to late Spring, Summer and early Fall. Example 1: Yet, Joe Davis, a savvy lawn service owner, readily understands that it is a year-round service. How so? Well, although the grass-cutting season is over, the Fall season brings leaves that are grounded in abundance as many homeowners incorporate trees within their landscape. At this point in the year, Joe converts his lawn mowers into "mulchers" (blades that chop leaves thinly). The finely chopped leaves now serve as fertilizer for Joe's customers' lawns over the course of the Fall and Winter seasons, in addition to saving his customers the tedious task of several raking sessions. Starting in late September/early October, Joe also begins promoting and publicizing his "mulching" service through various advertising media as he does with his lawn-cutting service at the top of each Spring season. And, each Spring, Joe's customers' neighbors scratch their heads trying to figure out why Joe's customers have the greenest lawns in their neighborhoods. Note: Same specialization, yet, diversified. Example 2: Through her promotion and publicity firm, Sherry Jones helps small business owners stay competitive with consistent profits through strategically placed advertising and news releases. However, Sherry would also like to increase her own company's financial 'bottom line' through a dose of extra sales and profits. One night during a brainstorming session, Sherry realizes that her promotion and publicity skills that she uses to successfully help area small business owners can also be used to help other businesses as well. Considering that writers need to promote their new books, and that musicians need to promote their new music releases, she begins to market her promotion and publicity services to these prospective clients. Within one week, Sherry lands five additional accounts, including two writers and three musicians as clients. Ironically, three of the clients were seeking a promoter and publicist, but were unaware of where to turn for help. Note: Same specialization, yet, diversified. Example 3: For as long as he can remember, Frank Walker has built beautiful wood-grained desks that are the talk of his town. Frank readily admits to owing his talent to having watched and assisted his father in making these fine works. Frank, however, would like to also increase his company's offerings to his existing clientele as well as attract new clients. After speaking with Janice, his wife, about his idea, Janice tells Frank that he might consider adding matching chairs to his desks. Frank thinks Janice's idea is the greatest thing he's heard since learning telephone long-distance was deregulated. But, Janice isn't nearly finished because she then shows Frank how he can now create three additional income streams from the two products (I know...that looks mathematically challenged, doesn't it?). 1. Income stream 1: The desks as stand-alone products
2. Income stream 2: The desks and chairs as matching sets
3. Income stream 3: The chairs sold separately While Janice's idea may or may not create separate markets per se for the business, as you can see, they do create additional income streams that are likely to come from Frank's existing customers as well as new customers. Note: Same specialization, yet, diversified. _____________________________________________________ [---MAIN TOPIC---] Now, consider additional target markets that your own product or service may reach: * Can it serve "as is?"
* Can it serve a dual purpose?
* Could it benefit from your producing it in various colors?
* How about manufacturing it in a number of sizes? Review your product or service to discover what possible additional income streams you may be overlooking, even though they may be staring straight at you. |
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