Achieving success in business takes a lot of hard work and passion. However, just because you have achieved success in one area does not meant it isn’t possible to achieve even more as a business. Expanding your company is always an option. There are many ways to do this. One strategy is to expand into a new sector entirely. While this involves some risk, you may also find that your new enterprise is even more profitable than your original business concept.
Launch a Product in a Similar Category
Although the old adage to not fix what isn’t broken in generally true, you can simply expand on your area of expertise in a logical fashion to expand your business. Let’s take, for example, Honda, one of the most successful companies in the world. While you may drive an Accord due to its reputation for engineering resilience, you may be unaware of the fact that Honda actually began by selling motorcycles. It was a logical evolution to expand into cars, and one that has made Honda a lot of money.
Create a Mass Market Version of Your Product
Another option to expand into a new sector is to create a mass market version of your product that is separated from your original business model. The most common example of this is the restaurant chain that expands into grocery store food goods. Chi-Chi’s, for example, was once a popular Mexican restaurant chain. However, even after all of its locations closed in North America, Chi-Chi’s still sells branded items in grocery stores like jars of salsa and tortilla chips.
Leverage Your Branding
You can also expand into new sectors by taking advantage of the public recognition you have already achieved with your branding. Just think, for example, of all the varied merchandise Coca-Cola sells every year. Consider the different ways you could use your brand to sell unrelated products. If you have a popular mascot, for example, you could invest in silicone mixing equipment to create Halloween masks of that character.
Create a Subsidiary
However, you may not want to use that branding at all. In fact, you may want to create a new brand all together. One way to do that is by creating a subsidiary company. Many large corporations consist of many different brands that the end consumer has no idea are under the same umbrella of ownership.
There are many ways to expand your business. Choosing to expand into a totally new sector is a bit risky. However, the rewards if you are successful can be well worth the trouble.
Lizzie Weakley is a freelance writer from Columbus, Ohio. In her free time, she enjoys the outdoors and walks in the park with her three-year-old husky, Snowball.