Product and Service-Level Diversification
The next task on your list is even more important: Diversification.
Let us first think about diversification in financial terms. Would you hold just one stock? Probably not. An experienced investor is likely to spread his or her investment among different asset classes to eliminate the risk of losing a lot of money at any given time. In short, diversifying your investments lowers your risk and provides better returns.
If you buy into the idea of a diversified portfolio, it should be a no-brainer to diversify your service offering in business.
Why risk a cash flow crisis by depending purely on clients walking through your door? There may always be a slow season and you need a diversified offering to fill in those gaps.
Let’s say you are a graphic designer. Instead of spending 100% of your time prospecting for new logo and website clients, diversify your time by establishing multiple revenue streams. Why not develop some “products” that your previous clients can benefit from? Create a series of social media and website icons that your clients can buy. Schedule two paid workshops and webinars a year during your slow seasons revolving around relevant topics in your industry.
Can you put clients on retainer to create personalized blog or Pinterest graphics? Can you monetize your expertise by offering services or education to other graphic designers? Targeting your peers is yet another revenue stream that builds upon your credibility as an expert.
Diversification is essential in business because it leads to scale. And when you scale, you lessen your risk even further. Setting up multiple streams of income eliminates your financial dependence on client work, and it is a sign that you have just regained control of your business.