How To Expand Outside Your Core Business

If you have been in business for a while and your growth starts to plateau, you might consider expanding outside of your core business. You could move into a new industry, introduce new products and services, find a new customer base to service, start selling internationally, or start a new business altogether. Similar to when you first started your business, your expansion journey is going to take a lot of planning and hard work, yet it can reap enormous benefits. To help you take the next step in your business, we have provided a list of tips for expanding outside your core business.

1. Do your market research.

Identify and evaluate your expansion opportunities, then determine whether they are viable by conducting market research. This will help you identify the target audience, competitors, and marketplace that you want to enter into, and whether it will be a worthwhile venture. Market research can guide your growth strategy and minimize resources wasted on failed or inefficient business activities.

2. Don’t stray too far from what you are good at.

If you are moving away from your core business model, you may be excited to try out new ideas and industries. However, it is wise to not stray too far from your existing experience and skillset, as you will not have the expertise that your new competitors would have. For example, if you have a landscaping business and want to branch out into IT support, it mightn’t be a good idea if you don’t already have advanced technical skills. However, a landscaper wanting to start their own plant nursery would make more sense.

3. Take it slow.

To give your business’ growth the best chance for success, you will need to take your journey step by step. Your business can’t grow overnight, therefore it is ideal to plan a steady-paced, linear path towards growth which you can tackle on a task-by-task basis. This will allow you to continue focusing on both businesses and prevent uncontrolled and unsustainable growth.

4. Give yourself the right tools for success.

Expanding your business can be a monumental task, and it is important that you take the process seriously. You need to be able to invest the necessary amount of money and resources for your growth to be a success. If you are barely getting by and don’t have the resources to spare, it isn’t the right time to be growing your business.

5. Don’t forget your core business.

Whilst the transition into new ways of doing business is exciting, it is important to not neglect your existing business. Your loyal customers have led you to the position of being able to expand your business, so it is important to keep serving them. Only expand your business if you have sufficient resources to sustain both businesses to a high level.

Expanding your business can be a risky venture, however if you are successful it can be very rewarding.