Guide to Diversifying Your Business

Choose horizontal or vertical

Decide if you'll have more success adding locations (i.e., same restaurant, additional city), adding niche locations (going from books to kids' books or athletic wear to tennis wear), or bringing in complementary products or services (such as adding office-design services to office-supplies sales).

I recommend: Brainstorm possible next steps using software like IdeaCue. Talk to a Small Business Development Center or one of SCORE's free retired executives for guidance to fit your situation.

Distribute differently

Adding alternate sales venues can add plenty to your bottom line.

I recommend: Try boosting your bricks-and-mortar storefront with Web site sales. Companies like GoEMerchant offer free software demos. AllBusiness has a Web kit of essential forms you may need. Take advantage of the global economy and sell internationally. Don't wait for customers to come to you; reach out to them with direct-mail software like ResponseDoubler.

Acquire another business

Augment your offerings with a ready-made addition — and the customers that come with it.

I recommend: Before rushing in, use a product like Sahakian's checklist to perform due diligence on your potential acquisition. Better yet, team up with an acquisitions firm like Growth Concepts that can help make a good match.

Market YOU as a product

Diversifying can also mean selling yourself in addition to your wares.

I recommend: Join the National Speakers Bureau or teach classes and get paid for sharing your knowledge. Write a book or magazine articles with the help of Writer's Market or ASJA to position yourself as an expert. Sell an online newsletter covering your area of expertise using tools from SparkList.