Branching Out in Your Home Business Klamath Falls OR

Business expansion usually follows a “vertical” path, meaning the business will try to sell more of its current product or service. That’s so because the effort usually requires few major adjustments or risks. A retailer who sells men’s suits will always try to sell more suits. If the market is hot, that’s all he needs to do.

Agility Computers
(503) 445-2622
10228 Southwest Park Way
Portland, OR
Services
Management Consultants, Computers and Equipment Repair and Maintenance
Hours
Mon-Sat
24 Hours Service

Data Provided by:
CH2A & Associates, Inc.
(503) 287-9836
2752 N. Williams
Portland, OR
 
Pacific Green Systems
(503) 244-4430
9870 SW Ventura Ct
Portland, OR

Data Provided by:
Swca Environmental Conslnts
(503) 224-0333
434 NW 6th Ave Ste 304
Portland, OR

Data Provided by:
IBI Group
(503) 222-2045
321 SW 4th Ave
Portland, OR
 
Boldtrek, Inc.
(503) 206-5831
4110 SE Hawthorne Blvd
Portland, OR
 
Fsa
(503) 252-9945
15011 N Lombard St
Portland, OR

Data Provided by:
Western Strategies, LLC
(503) 260-3235
13500 S.W. Pacific Hwy., #523
Portland, OR
 
Kms Consulting
(503) 297-3617
5134 SW Bancroft St
Portland, OR

Data Provided by:
Jay C. Brandon, Jr. Training for Results
(503) 292-3929
360 S.W. Breeze Court
Portland, OR
 
Data Provided by:

Branching Out in Your Home Business

Provided By: 

Grow Your Business By Expanding Horizontally
By Christopher J. Bachler

Even if you plan to always work from home, you’ll probably need to expand. You might want or need more money. You might need to grow, just to keep up with your competitors. If nothing else, you know that some of your customers will eventually disappear, and the cost of doing business will continue to rise. So expansion isn’t just an ambitious dream—it’s a real-world necessity!

Business expansion usually follows a “vertical” path, meaning the business will try to sell more of its current product or service. That’s so because the effort usually requires few major adjustments or risks. A retailer who sells men’s suits will always try to sell more suits. If the market is hot, that’s all he needs to do.

But the market is probably not hot enough for him to sell only suits. So the retailer expands “horizontally” by adding shirts, ties, belts, shoes, or any other complementary item that his customers might want. In this way, he not only gains more sales from customers who buy suits, but also from those who might only want a shirt or a belt.

The principle is no different for home-based businesses. A self-employed painter might decide to also market plastering or other services, as well. A seminar planner might branch out into special events planning, awards’ ceremonies, or even office parties.

When Horizontal Expansion Makes Sense
Horizontal expansion makes sense when your “vertical growth” has reached its limit, but you still want to grow. Even when more vertical growth is possible, a point of diminishing returns can be reached when further expenditures of time or money are not justified.

David Frey, President of Marketing Best Practices, ( www.marketingbestpractices.com ) and author of, The Small Business Marketing Bible, suggests that horizontal expansion is best for home businesses whose products or services can be expanded with little cash outlay and risk. “If you have a large and growing customer following and much of your business is brought in through referrals, then offering more products and services might be a good idea since you can expand without all the associated marketing costs. Another good example would be businesses whose vendors can drop ship most of the products to customer, since they won’t need to tie up money in inventory or extra personnel.”

With some exceptions, it’s usually easier to expand product rather than service offerings since product selling tends to require less preparation and involvement than service selling. To add a service, for instance, you might need to learn new skills. Even if you already possess the requisite knowledge, your level of experience in the new area won’t be equal to that associated with your traditional service.

It can also be difficult to frequently shift from one skill to another. Most freelance writers, for instance, won’t find it easy to shift from writing technical manuals...

Click here to read more from Home Business Magazine

© Copyright 2013 Home Business Magazine. All Rights Reserved. Privacy Policy | Terms and Conditions
Infoswell Media