Elizabeth Ashley gets you started

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. Diversify scary, like something from the world of international high finance, but really all it means is seeking out and acting upon an additional business opportunity. Many successful holistic therapists already do this by providing services like online coaching or consultations, creating products, writing e-books or offering courses. Often, however, we are so involved in our day to day business and lives that we fail to see opportunities to diversify even when they are 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, 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 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

Diversification involves acquiring or setting up a second business unit which is unrelated to your existing one – such as opening a record shop next door to your existing premises or buying a local cleaning franchise. One example of a conglomerate diversification strategy was when Colgate, the toothpaste company, launched a range of ready meals under their brand in the USA. Although the brand was well known, customers could be Some existing clients 6 6 Some companies’ entire growth history is based & CONQUER 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

With COVID having devastated many holistic therapy Virgin Brides, or Virgin Cola? While this strategy practices, now’s the time to consider diversifying. Creating may well add to your revenues, it will also take more time, money and resources than other additional products and services can help secure your future forms of diversification. and provide revenues throughout the year…

DIIVERSIFICATION sounds quite

OpTION cUSTOmER BASE

dISTANcE REIKI

New and Existing interested 8

ANImAL REIKI

have horses, but mainly new the risks this strategy involves. Do you remember Horizontal Diversification simply involves offering new products or services that should appeal to your existing customer base. That might involve learning and offering a new type of massage, or a taking courses in a new modality.

Vertical Diversification involves offering products or services which come from further up or down the production cycle. For example,

pERSONAL INTEREST LEvEL TEcHNOLOgIcAL OR OTHER mATERIALS / INfRASTRUcTURE

7

Skype/Zoom subscription – low cost - 8

8 Changes to website, cost of training course

ORAcLE dEcK

Mainly new 6

9 – Keira loves to draw

Would need an e-commerce site 6

an aromatherapist might launch their own label essential oils, or even distil their own oils from home-grown plants. A massage therapist might design, manufacture and market a tool for other bodyworkers or for people to use at home.

Concentric Diversification involves creating new products based on making the most of an existing infrastructure, such as technology and marketing systems. An example, a therapist who already produces e-books may add additional titles, or someone who makes scented candles may create bespoke scented versions for specific events or occasions such as weddings or Christmas.

Whichever diversification strategy appeals to you, creating and successfully marketing a new product or service takes a different skill set from being a therapist, but you can build on your existing knowledge and experience. Choosing the right product or service to diversify into will take a lot of research and some areas have many more barriers to entry than others. 6 – would need changes to website

getting started

The first step in any diversification process is coming up with a viable idea. Try making a list of your skills and abilities and those of anyone close to you who might be able to help out. Brainstorm a list of possible diversifications, divided into products and services. Don’t discount any ideas at this stage as you will need to narrow down your choices later.

Narrowing down your choices

Some things on your list may strike you immediately as non-runners. Discard them at this stage, then look more closely at the options that remain. Does one appeal to you significantly more than the others? If so, it

TRAININg

No additional training – 10

Cost of course, difficulty of getting hands on training 4

cOST pOTENTIAL pROfIT

Facebook or similar ad campaign and may be worth exploring that one first. You are far

4 – one to one sessions are time based, therefore can only take a limited number of bookings

4 – would need Facebook or similar ad campaign, training, changes to website

5– one to one sessions are time based, but fewer specialists

None – local business support may help 10

4- costs of producing and marketing the decks 8 – low to medium production costs, high margins

TOTAL

42/60

33/60

43/60

likelier to make a success of something which particularly interests you.

If several choices appeal, consider how well they fit with your existing skill base and customer demographic. Naturally, you should do your research and a full business plan, but sometimes a few questions can help you discard some more ideas before you invest a lot of time on the project. You’re looking for the diversification that offers the optimal combination of high customer demand, good levels of return on your investment, low initial investment in terms of time, effort and money and a great deal of satisfaction. It must also be something you’d be happy to pursue for years rather than a few weeks.

Let’s take an example

Let’s consider Keira, who is an experienced holistic therapist. She practices Reiki, Angelic card readings and offers aromatherapy massages. Her list of diversification options includes: Offering distance Reiki, expanding her customer base by taking a course in Animal Reiki, or creating her own deck of oracle cards for sale. She decides to score each option out of 10, with 10 being ideal, for a number of criteria. Using a similar grid can help you narrow your options.

So, Keira has two stronger options. As her circumstances or market conditions change, her options might become more or less attractive over time. Her optimal diversification strategy may involve all three options over time. She could, for example, start by offering distance Reiki, while she looks at the market for and production costs of Oracle Cards while she creates her own unique deck. She could also look for an animal reiki course that starts in a few months and enrol on that. Undertaking a similar evaluation will help you find ways to make your business stronger and more able to weather adversity. n