As a small business, you always seek to increase profits and minimise costs. Unlike big businesses, small businesses have to always rely on increasing their sales margins to meet their goals. This means that the more sales made, the more the profit margins.
But it is necessary to also understand that boosting your clientele base may at times be dictated by providing a variety of products or services. It is always dangerous to refer customers to other businesses when you can actually provide the same products or services. While it is worth paying for a specialised product or service, it is necessary to create as many supplementary businesses as possible.
But how can you create a new business on top of an existing one without affecting your business plan?
First, assess the products or services you offer. For instance, you may be trading in telephone handsets. Keenly consider other related businesses that can supplement it, such as, a telephone handset repair business. This new venture should ultimately be able to complement your business. In addition, the new business should act as a catalyst and respond to your customer needs.
If you have a hair dressing salon, you may set up a manicure and pedicure business. This would lead to retention of your clientele base.
Creating this one stop centre of related business interests has a lot of advantages as it helps to minimise risks associated with a single product or service offering that may easily be out competed. For example, when dealing in seasonal products, you would be out of business when it turns out to be a forgettable season.
Generally, setting up a related business to complement your main business interests is worthwhile.
But again, it is important to always obtain the necessary resources for your new business venture.
Remember that the purpose of starting this new business is to retain your clientele base, bring in new customers and increase your profit margins.