We can help you become an educated buyer, help you eliminate the technology that isn’t right for you or your business and give you insight into those areas of expansion that might be right for you. What EJ and I can do is eliminate some of the guesswork about your expansion options. Photos courtesy of Hirsch Gift, Inc., Houston, TX. Getting into promotional products might be an easy way for your business to diversify. Your financial advisor or CPA can’t tell you what to do. Of course, expanding and diversifying your business in any direction is a decision you have to make for yourself. When you expand into a better-connected market niche like this, you really don’t run into the problem of putting your core business at risk. An engraving and awards business, for instance, might invest in sublimation equipment to offer a broader product selection to customers. It might also involve investing in new equipment-without too much of a stretch. This involves using or upgrading your existing equipment to market more profitably to your existing customer base. Sometimes this is a perfect solution but sometimes the new venture does not go as planned, or the success of it is at the expense of your core business.Ī better approach might be to expand within the realm of your core market. However, the problem with this approach is you run the risk of investing your time, money and resources into a brand new (and unfamiliar) area. For example, a business involved in primarily engraving awards and gifts might spread out into screen printing and the wearables market.
One approach is to expand and diversify your business into a totally new market where there are new customers, new equipment and new learning curves. There are a couple of schools of thought for keeping your business moving forward. Once all this economic evil settles down, it will be the company with the best technology in place, the highest skill levels and the most “go get ‘em” attitude that will lead all the others.
But companies don’t grow and thrive by stashing money, they grow by investing it. So what should you do? The safety conscious may tend to stick their money in the bank and hold onto it for a “rainy day,” and that may not be a bad idea-especially with the uncertain economy and political climate we live in today. The options for doing that, however, can be pretty overwhelming and so can the price tag. In order to survive, you must stay competitive, offer the latest technology and do it with greater skill and quality than the guy down the street. A business that isn’t growing is moving backwards. But you know you can’t just sit still-especially in today’s soft economy. Your business is doing OK or at least you’re holding your own. What is easy is making the wrong decision, losing our cash reserve, wasting a lot of time and ending up worse off than when we began. We all face it from time to time: What should we do next in our business? Should we spend our resources expanding into brand new areas, expand what we are already doing or bank our cash and hope for the best? These decisions aren’t easy because there are no clear cut answers.
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