Diversifying... a behaviour of a failing business?

Recently I have started seeing many people diversifying the services that they offer in business, but into areas that are not their core specialism.

Take it from me... I've been there.

You can't be all things to all people and my firm belief is that you should focus on what you are a specialist in, and niche niche niche.

One of the core problems that many businesses struggle with, who start to diversify, is that of identity.

If you offer one type of product and service, then offer something else, then something else, then introduce something else... people wont remember everything that you do.

When talking to someone about your business, product do you choose to talk about? Everything or just one?

Most people who try and be all things to all men (and women) will try and cram everything that they do into one conversation. What will the person who they are talking to take way from that? If you focus on one thing and give them one nugget to keep hold of, when they hear someone else talking about the thing you mentioned, they will probably remember.

John Adams (2nd president of the USA) was once quoted saying: "It's simply a matter of doing what you do best and not worrying about what the other fellow is going to do" - even though this was almost 200 years ago I so believe in this.

A jack of all trade becomes a master of none! A lesson that I learned in my last business.

I was also told by a business coach once, that one of the behaviours of a failing business was they they try and put hand to anything that they think that they can do in a desperate attempt to try and stay afloat. I think that this is one of the things that my previous business did.

My plea to you... if you can diversify your product offering because you have identified a new niche... resource this well and maybe try to separate this as a new brand or a new business. It can be a great way to grow your income or a business portfolio, but not resourced, financed or marketed in the right way could result in failure.

If you want to chat on this some more and find out what my experience of this was... just get in touch.

I will be honest and also say this... I'm still learning this all too, I'm far from perfect!