When your business begins to grow and gain momentum, it is important to look at what other sales channels will provide you with the most success.
This often involves testing and diversification of many other areas of your business. From marketing to sales and recruitment.
Each area of business is unique and how we approach them will affect our business. Sales are one of the most important aspects of any business whether it is B2C or B2B based.
We can utilise many channels to sell our products and services and reap even greater benefits. No business should be limited to just one channel. But we must find the channels that are right for our business.
Why You Beed Need to Diversify:
Limiting yourself to just one or two sales channels may not harm your business, but it will limit its scope of growth.
But at times having a limited number of sales channels can adversely affect your business.
An obvious case is the large number of businesses which relied on physical traffic during the Covid pandemic.
Up to 50% of retail and 70% of the arts sector had to close throughout 2020 according to the CSO.
Only time will tell what permanent damage was done.
Those that were quick to diversify remained operational and many benefited.
Diversification into new sales channels can provide a wide number of benefits, and these are not just limited to sales. Diversification:
Of course, as with all aspects of business, there are risks and unknowns involved. But without diversification, you are putting your business on a more difficult path.
5-Sales Diversification Options:
Knowing where to start when diversifying your sales channels can be a daunting task. With so many options, where do you start? What are the risks involved and how do you validate your choices?
It is a good idea to know some of your options.
Modern diversification revolves around using digital channels to get your brand, products and services in front of customers. So that is where we will concentrate.
With almost 70% of internet users purchasing online in 2020, digital channels are the best option for most businesses.
Whether you are a service or product-based business, you should have a website. It allows potential customers to find you.
They can validate your business, see what you have to offer and get in contact with you when needed.
Websites also act as incredible marketing tools and as a way to sell products and services.
There are numerous ways to utilise a website to your advantage.
Your website can contain an online store. With a well-configured website:
Websites are one of the most powerful digital tools to diversify your sales approach.
With an email list and information gathered from your website, you can use strategic marketing campaigns to upsell to customers, promote new products and services and provide information-rich emails.
Acting as a bridge between your physical store and online presence, emails remain one of the most powerful methods to sell to your customers.
Individuals who have already signed up for your emails are interested in your products, services and business.
You can nurture these relationships and develop strong marketing and sales channels.
Third-party sites have established selling and marketing guidelines and huge audiences.
Learning the strategies to operate on these sites can be difficult, you must also pay for the service and are at the mercy of how these sites operate.
That being said dropshipping sites and Amazon FBA are two of the world’s largest marketplaces. They are ideal for entrepreneurs and business owners with smaller budgets.
Offline Sales Diversification:
Though online selling and marketing is the direction most if not all businesses should take. There are a variety of offline sales channels that may be the right fit for your business.
Partnerships can be difficult but very rewarding methods of diversifying your sales channels.
This can create a strong business bond and help both businesses progress.
Negotiating partnerships can be difficult so it’s important to know what questions to ask.
How will marketing and sales be organised and what benefits you can provide to one another.
Perhaps you have a unique product or service that is wanted by other businesses and customers.
It may not be realistic for you to handle each aspect yourself.
Franchising may be an option to diversify your sales.
You can market the product to other professionals who will sell under your brand name. Increasing your exposure to more customers.
But instead of dealing directly with customers, your products and services will be sold by trusted professionals who will operate in different markets.
Franchises can be difficult to start and operate but the rewards can be immense if you have a truly unique product or service.
Obstacles to Diversification:
Diversification does not come without its share of difficulties. It’s important to know what works well for your business, as not all channels will be a good fit.
To better understand which path is right for you, you must research, weigh up numerous options and then work hard on your chosen channels.
There are many unknowns involved and it’s important to focus on the following areas.
To find out what channels are best for your business you need to know where your audience is.
Once you have a better understanding of where your ideal audience is, you can focus on generating marketing tactics, learn new sales strategies and create a team to work in these areas.
Some questions to ask yourself:
What Training is Involved?
Operating in a new sales environment can take time and training.
Though this can seem overwhelming there are always support networks to assist in major business transitions and changes.
Is Diversification Something You Need to Do?
As a business owner, you may be questioning if diversification is something you need to do.
The answer though is simple, and it is yes!
Without diversification, your business is bound to stagnate.
With so much competition both online and offline, if you stick to one route your business will be in a very difficult position.
Though it may seem overwhelming at the start, diversification has many benefits as we have seen.
Multiple streams of income protect your business from harm.
Should your physical location come under pressure, or your online presence suffer a setback, your diversified channels can maintain your business while you rectify the situation.
But Where Do You Start?
It’s important to have goals for your business, whether it is growth, diversification or sustainability.
When you know what you want for your business it is easier to plan.
You should then consult with others to gain some insights into what might work and what might not for your business.
Develop relationships with others within your industry and study businesses similar to yours.
What have they done that brought success?
Finally, ask internally.
Your employees and business partners may have sales generating ideas which you have not thought of.
Consulting with others:
Sales diversification can be one of the most complicated aspects of business operations, but it provides some of the best results, from automation to increased sales and marketing. Different sales routes can change a business dramatically.
Sometimes it can be difficult to source the right information or realise when you have made an error.
By having an individual to hold you accountable, provide you with different perspectives and help with their experience, you can learn and apply more to your business.
That is why it can be hugely beneficial to employ the experience and knowledge of a business coach.
4growth.ie can assist you with diversification options, experience in adopting new marketing and sales approaches and accountability for tasks that you need to complete for the benefit of your business.