Adding a New Division
Are you thinking of adding a new division to your small business? Navigating new waters is both exciting and challenging. For those currently operating a profitable, successfully managed and well respected business, opening a new division can often be beneficial. Naturally, you will have to perform your due diligence by thoroughly conducting all the marketing research, exploring competition, investigating the economic opportunities/obstacles, reviewing technological requirements and organizing the business structure and leadership of your new venture. Once the decision to move forward has been made, there are few tips you can follow
Data indicates that when opening a division offering substantially different services from your current business, you should invest in new branding to distinguish your new operation from the existing company. While its association with the primary business is beneficial when it comes to consumer loyalty and trust, giving the new division its own identity prepares current clients for differences in corporate culture, sales techniques, employee interactions, and managerial styles.
While certain philosophies regarding client treatment and satisfaction may remain unchanged, how such goals are accomplished may differ. For example, perhaps your new business is of a more scientific in nature. Sales personnel may tend to speak to consumers in a more technical manner. It’s important to encourage salespeople to provide information in a fundamental fashion without making the client feel ignorant. Likewise, paperwork and/or financing requirements may be different from those associated with the existing business. Again, sales staff must reassure clients that these measures are not a reflection of mistrust, but merely standard practice in conjunction with the new products/services.
Business expansion/growth through a divisional approach usually enables the small business owner to maintain and enhance his/her entrepreneurial spirit. In addition, this model allows small business owners to develop the governance skills required of one overseeing a larger business by honing his/her ability to retain control and preserve stability while learning to direct a larger staff and handle enhanced financial benefits once they are achieved.
Though it may not seem like it, this is an ideal time to venture into new divisional business. It may be a hackneyed advertising expression, but the truth is that people always associate new with improved. With some of the day-to-day problems we face, it’s only natural that we seek any product or service that’s exciting and enhanced. So if your entrepreneurial spirit is seeking nourishment, check-out your options. You just might find you’re up to the task!
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