Know-How Exchange : Strategy

for diversification your business you may choose out of below three options -
1- diversified in a business that have same characteristics, features as your existing product - this would definitely allow you and your employee to cope with all areas as you are already having experienced in this field

2- diversify in a business that you may use your current customer base any try ro push this new product and services to them on affordable rate but quality should be OK.

3- diversified into absolute unrelated market, unrelated product - where you would start form scratch and it would entail higher selling and administrative and marketing cost

so best idea is to try to find out cause an effect relationship factors that are forcing your business to unprofitable. and importantly concentrate on such activities of our sourcing - ie raw material, unfinished product. COST leadership and differentiation is vital element to gain profit. try to push back your cost that would lead you to offer good margin to your distribution network hence profit would automatically raise.

Thank you,

Prashant
[Email address deleted by staff]

I would consider three points:

1. Talk to your best customers, the ones that are likely to buy something else from you, and ask them where they need help or where they are bleeding at.

2. This is very risky/tricky, but you can look to acquire another company that is need. This will instantly give you marketshare and a deal on existing resources. If you can determine how to turn the company around this could give you a good ROI.

3. Determine what business could reduce your existing costs. What do you currently have to buy? If you owned a larger share of the end-result resources, you can increase your profits.