Businesses worldwide face tough times as we move into the second half of 2022. COVID-19 impacted almost every industry and every vertical at every level, large corporations included, to small businesses.
Brick-and-mortar business owners and those who depend on their ability to provide services in person were concerned about infection and lockdowns. This made it more difficult for them to move transactions online. Consumers have had to adapt to remote service delivery. They can check their bank balances online and order takeout from apps.
It may have taken a pandemic for them to move online, but consumers now enjoy the speed and convenience of digital services. Braze conducted a global study and found that 29% would shop online more during the COVID-19 pandemic. The main reason for this was convenience and not health concerns. The study was limited to physical goods, but people don’t expect to feel differently about the delivery of services.
Businesses are forced to diversify because they cannot keep up with a growing client base that is increasingly digital and a contracting economy. If you are an agency, diversifying services can strengthen your business proposition, make you more resilient, and open up new revenue streams. It also helps you provide greater value to clients.
Diversification can be difficult, however. These are the key points to remember to diversify and strengthen your market share as the small-business ecosystem recovered in 2021.
Be true to your strengths
Assessing your current skills and abilities is the first step. This will allow you to identify your strengths and weaknesses. You can map your strengths and weaknesses to help you identify areas that you are superior to your competitors. This will allow you to create a new service.
Also, you need to have a complete understanding of your assets so that you can find ways to use them differently. You can pivot some assets like data into a completely new service without major capital investment.
You can diversify into new services to increase your revenue stream. But focusing on the areas you excel in will allow you to do it more effectively, build a reputation and attract new clients.
Understanding Client Need
The next step is to analyze your market. Trends change at lightning speed, so it’s impossible to assume that your clients still have the same needs as they did a year ago or six months ago. New diversification opportunities can be found by analyzing client demand.
Establish effective relationships
Reseller partnerships are a great way to diversify. They allow you to offer a whole new set of services to clients with minimal expense.
Partnering with value-add resellers could be a way to add your own flair and improve white label products before they are sold on. You have the contacts and the expertise, and your partner sees increased sales. In return, you receive a portion of the deal.
Don’t Overstretch Yourself
As you diversify, keep your core competencies in mind. Expanding is the key to successful diversification.
Convert Services into Products
Also, digital service providers need to explore the possibility of converting their services into assets or products. Web designers might sell templates or offer online courses to help solopreneurs build their business websites. White papers could be created by business consultants to explain how to select the best data visualizations. This would complement their existing services, which guide SMB clients through their data.
This allows you to diversify and create new revenue streams, while also allowing you to move online. Service providers that are unable to communicate their services in person can now sell digital products online.