There are many advantages to expanding service offerings – it provides opportunities such as business growth, a new revenue stream and the potential to attract more clients. Therefore, if you have been experiencing stable revenue, a growth in sales and have some spare cash to reinvest, expanding your service offerings could be a great opportunity to push your business towards further success. However, before rushing into a decision, it is important to conduct some research to determine what extended strategy will be most profitable for your business. Below, we have summarized our top considerations that we believe you should take before deciding on your new business strategy…
Before making the decision to expand the services you offer, it is important to conduct some preliminary research. Increasing your services will result in higher costs for your business, such as implementation costs and additional costs for labor, supply, marketing, production and so on. Therefore, it is important to research how much your new venture will cost your business, and take careful consideration before making any decision into whether this is a financially feasible strategy.
Check out the competition
It could also be very useful to assess what other businesses within your industry are offering. Through assessing what your competitors are currently providing, you could gain an understanding of what your business is missing, as well as presenting the opportunity to find a gap within the market. A successful competitor analysis will help to establish a way in which you can differentiate from your competitors and gain more market share.
Ask your current customers
Your current customer base can be an extremely valuable resource if choosing to expand your service offerings. Through talking to your customers, you can establish if there are any needs of theirs you are failing to meet, as the needs of your customers should come first in any business venture. The ideal strategy for your business should be able to offer multiple solutions in one place, so they do not need to switch to your competitors for additional services that they may be offering.
Ensure your new offerings are related to your current offerings
It is important to ensure that the new services you provide align with your current offerings. If you offer a service completely unrelated to your current operations, this could create a high risk situation for your business as you will not be able to utilize your pre-existing industry knowledge, your current client base or your current market share. Consumers will be more likely to trust and purchase your new offerings if they believe that you have expertise in the industry, or if they have purchased a similar service from you before.
If you wish to expand your service offerings, why not discuss your ideas with one of our team today? We can help to determine if this will be a profitable venture for your business or if this is a financially viable option at this current time. If you need external investment to implement your new strategies, we can work with you to locate suitable investors or apply for loans to kickstart your new venture.