BUSINESS
Diversification
Diversify & CONQUER
With COVID having devastated many holistic therapy practices, now’s the time to consider diversifying. Creating additional products and services can help secure your future and provide revenues throughout the year…
D
and doubtless the company knew a lot about what goes on in people’s mouths, American consumers found the idea of eating dinner made by a toothpaste company unappetising and the diversification failed. Some companies’ entire growth history is based on this diversification strategy. Virgin started as a record company, but the group now includes holidays, banking and an airline and even has plans for space travel. Virgin also demonstrate the risks this strategy involves. Do you remember Virgin Brides, or Virgin Cola? While this strategy may well add to your revenues, it will also take more time, money and resources than other forms of diversification. Horizontal Diversification simply involves offering new products or services that should
IIVERSIFICATION sounds quite
existing one – such as opening a record shop
appeal to your existing customer base. That
scary, like something from
next door to your existing premises or buying
might involve learning and offering a new type of
the world of international high
a local cleaning franchise. One example of a
massage, or a taking courses in a new modality.
finance, but really all it means is
conglomerate diversification strategy was when
seeking out and acting upon an
Colgate, the toothpaste company, launched a
Vertical Diversification involves offering
additional business opportunity. Many successful
range of ready meals under their brand in the
products or services which come from further
holistic therapists already do this by providing
USA. Although the brand was well known,
up or down the production cycle. For example,
services like online coaching or consultations, creating products, writing e-books or offering
TECHNOLOGICAL
courses. Often, however, we are so involved in our day to day business and lives that we fail to
OPTION
CUSTOMER BASE
see opportunities to diversify even when they are
PERSONAL
OR OTHER
INTEREST LEVEL
MATERIALS / INFRASTRUCTURE
right in front of us. Diversification may provide the opportunity to increase revenues and profitability while making better use of your existing capabilities and resources. It can also be a way of recovering from a slump in business or difficult trading conditions,
DISTANCE REIKI
New and Existing 7
Skype/Zoom subscription – low cost - 8
Some existing clients have horses, but mainly new 6
8
Changes to website, cost of training course 6
Mainly new 6
9 – Keira loves to draw
Would need an e-commerce site 6
customers could be interested 8
such as a change in consumer behaviour or forced closure during a pandemic. There’s a chance that we may face further lockdowns over the winter months. Diversification gives your business a wider base with several revenue streams, meaning that if one area suffers a downturn, others may
ANIMAL REIKI
make up for it.
Choose a strategy There are four types of diversification strategy, but only three of these are likely to appeal to holistic therapists as they are more suitable for smaller entities. The fourth, Conglomerate
ORACLE DECK
Diversification involves acquiring or setting up a second business unit which is unrelated to your
16
holistic therapist 2020
holistictherapistmagazine.com
