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YahooExpand your niche. As an example, you may be currently involved in renting chairs and tables for parties. But as you look carefully, you see that the customer would like a "one stop" solution and you could move further into comprehensive catering using the same customer base. Or perhaps you decorate party halls, which means you could also do set design or perhaps home or garden decoration. Or because you give advice to those renting party equipment from you, you may be into events planning. Look at your business. If you are in a niche of a larger industry, by expanding your niche, you build on your competencies and your customers.
Know your industry and its market. Once you have identified the industry your business is a part of, gather all the information you can about it. Learn the trends emerging in what people look for in the industry. Ask people, observe their behavior, read articles, attend events, hang out in functions for your industry. You don't have to attend those expensive conferences. You can just hang out in the coffee shops where the events are and listen and observe. Most of all, talk to your customers about the problems they have. If expanding your niche could supply a solution, you've just expanded your business. Remember, IBM used to be totally committed to hardware. Today, services, services, services. They listened to their customers and moved sideways.
Know the technology. Often, when new technology starts to be applied in a particular business, it creates new demands that existing businesses are still unable to respond to either because of lack of skills, equipment or drive. Remember what happened when computers were applied to the business card industry. Instant cards ready in every city where your your business took you, in every language you could think of. Change is happening in every niche, in every business and you are either on the wave or under it! Engage your employees to think of possible products and services that will be in demand because of these new knowledge and technology.
Know your own capabilities. Find out if your current business is able to provide these new products and services. Analyze the demand that will come about to establish the rationale for going after this new opportunity. If it is worth pursuing, then establish the requirements and timelines needed to develop the new product or service. In short, do a simple business plan.
Innovate. Begin building the capacity to offer the new product or service. Make sure that you are not sacrificing the other products and services you currently offer if there is still a profitable market for these. Remember, Campbell's and tomato soup. Lots of new products, but the focus never shifts from number 1! Remember though, few products and few services are eternal. While looking at new directions, never take your eyes off improving or adapting your core business.
Organize and manage the transition process. Your first concern is how you help your existing clients and customers to come with you. If you are a gift shop, how do you move into corporate gifts and incentives? How do you use your existing customer base? Think!
Assign a team to work on the development of the new product or service. Often, it is better to assign a new team. They are more willing to explore new products or services when assigned to a new development task. Of course, if you are a small business, maybe the only team is YOU. So make sure someone..husband...whomever...is looking after the day to day while you build the idea.
Invest 30 minutes a day in thinking. Look sideways. What are the parallel niches you could slip into? What new technology is out there (check your competitors every once in a while). Are your customers moving in new directions leading to new needs? Check for new business at the Chamber of Commerce or in the newspapers. Remember...the only difference between a rut and a grave is the depth! The buggy whip maker of yesteryear is now making pony saddles in an exploding horse and pony industry. Look over the rut and see where to grow.
