Sunday, December 6, 2015

Expanding Into New Markets and Services

Companies that stand still die.  That is why in addition to constantly improving current products and services, company management must use the foundation already created to move into new products or services and even into new markets.  Sometimes this is done by acquisitions, which can be a legitimate strategy provided the purchase price is not influenced by emotion, rather than bottom line common sense.

In other cases, it is perfectly logical to ask the question internally, what else can we be doing and for whom.   Look for a need in the marketplace and fill it. A company's assets include its talent pool, credit lines, supply chain, office locations, balance sheet and the good will that comes from years in business.  Money in the bank and financial stability is also important to growing any business.   All of these assets can be used to grow into new products, services and markets.

Many in the company, vested in current businesses, may be threatened by this diversion of effort and resources into new products and services.  Employees really do not like change.  Instead, help them see the potential opportunity that could come from expansion, not just for the company; but for them personally.  The best way to get buy in is to involve old timers, with the company for years, in new businesses.  If they have the talent to survive the up's and down's of business cycles, they have the talent to deal with new business concepts.  In fact, company experience to build from is a great way to move forward.  Companies that are not moving forward are moving backward and usually not for long.   

No comments:

Post a Comment