Branching Out in Your Home Business Lahaina HI

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.

Management Consultants Of Hawaii
(808) 661-8795
PO Box 10039
Lahaina, HI
 
Strategic Impact Unlimited
(808) 244-9486
307 S Alu Rd
Wailuku, HI
 
S&S Management Consultants Llc
(808) 242-8428
1498 Lower Main St Ste A2
Wailuku, HI
 
Vocational Management
(808) 871-1568
53 N Puunene Ave
Kahului, HI
 
Diamond Resort Management Inc
(808) 874-0500
555 Kaukahi St
Kihei, HI
 
Management Consultants Of Hawaii Inc
(808) 661-8795
727 Wainee St Ste 106
Lahaina, HI
 
Panache Destination Management
(808) 243-5600
891 Alua St Ste 15
Wailuku, HI
 
Prudential Commercial Services
(808) 877-7727
296 Alamaha St Ste A
Kahului, HI
 
Era Maui Real Estate
(808) 879-1511
225 Piikea Ave Ste 92
Kihei, HI
 
Akamai Payroll Resources LTD
(808) 874-0055
2439 S Kihei Rd Ste 204b
Kihei, HI
 

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