As a business owner, it is pretty much easy for you to feel like you don’t know what drives your industry. You lack the connections to those who make decisions, and you are at the mercy of what life pretty much throws at you.
Macro factors can change, and this is the element of uncertainty. As a small business owner, you can’t but feel helpless. From your area not having sufficient foot traffic to landlords raising prices due to macro-economic changes, thus affecting your sales and profit margins.
We understand the pain.
However, there are proven ways that you can help to make things much better for yourself, and one of them is through diversifying your business channels to widen your customer base.
How it this possible? Take a look.
Every business has a uniqueness, and often times not many knows of that uniqueness. This results in your sales reach being only where you are and those you’re familiar and comfortable with reaching. Say you’re a physical store in Kepong – doesn’t mean you have to depend solely on your neighbourhood sale.
What if you could leverage on innovation and technology to widen your user base? Thanks to the advent of the Internet and e commerce, we can see that retailers and manufacturers don’t necessarily need to be confined to one space when it comes to making sales. So, you could be based in a city and actually see to the needs of people outside your country or state. You may be based in Kepong, but you can easily expand your distribution to Kedah or even America, by shipping your product by way of lead generation and sales conversion through digital channels.
Your locale may tell you that your product is only appealing to those aged 45-50, but expanding your distribution may yield you different results. Your products may be appealing to those aged 20-30, ultimately, what you’ve just done is that you have widened your customer pool by opening your distribution channel. The benefit of doing so is that, the wider your customer pool, the more stable you are income wise. Believe it or not, it’s only common sense of course that more customers = more income. But what if just like investment portfolios, you achieve stability by having diverse market foothold. This is what is known as hedging, when you secure yourself market shares in various locality, you now have something to fall back to if there were to be disruptions in one market segment you hold. For example, this can be seasonal changes, suddenly sales in Kepong has dropped, but sales in Kedah has increased or is stable, you can easily shift your budget over to the Kedah segment and secure more sales in order to equalise on the drop of sales in Kepong.
Expanding into new markets can be scary, rightfully so as this incurs a lot of cost just to market test and market validations. You open your store in new areas, and unfortunately it doesn’t work out. Scary right? This is where the beauty of digital comes into play, you can easily scope out market demands for your product or services before hand and then diversify your sales channels. How to do so? Easy, here’s how;