Diversifying To Increase Cash Flow

par3144

It is tough to survive today in any business. I have been on the top and I have been on the bottom. The fear of not gaining control of your business is inevitable when the chips are down, but hang in there.

Education and knowledge is the key to having success if used properly. Diversification helps you to overcome the tough times by helping to increase cash flow and expanding your business.

I would like to share some of those diversifications with you and to see what other members of this forum have done to expand and diversify.

1973 Hardware (family owned retail), 1975-glass & screen repair, 1979-small engine repair(schooling), and home Improvements. 1986 - Full Sharpening service (pvt schooling), 1998-Locksmithing (home courses), 2007-integrated Security systems. These are a few changes I have added over the years. Today, the only part of business that has been eliminated is the family hardware, mainly because of the big box stores.

What are some of the changes you made to expand business or just plain increase your knowledge of something that has intrigued you over the years?

Thanks

Pat

ron schenker

I'm moving to the country very soon and have been researching well and septic, wood stoves, solar heating, and green building. I find this interesting and may eventually get into something along these lines for a little extra income. You're right about knowledge and education. Hands on training is very important as well.

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SelfContract

Just like investment in many different stocks from different sectors in order to survive bad economy... you should also invest your skills into many trades that you can learn such as, i.e., plumbing, carpentry, painting, electrical, roofing, siding, cleaning, lawning, drywall, auto mechanics, sand blasting, excavating, masonary, green building, solar install, highway/bridge construction, etc. as much as you can learn in a short time as you $$ can buy too...Advertising/selling your skills all... jumping from one trade to another... or do them all as GCs... anything... anytime... anywhere.. anyhow.... Good luck!

Damn, I sound like a dreamer. Take a lifetime to learn all those right?

john elliott

I would recommend anyone who is looking to diversify to consider something where you are selling a product as well as a service. Products are easier to differentiate than services, and people understand that some products cost more and usually those will be the one's that are worth more, and this can be a way of competing with low-ballers.

For instance, Ron Shencker's mention of wood stoves- how about locating a source of good quality stoves and selling those with a free installation service rather than charging to install stoves that they've bought elsewhere?

John

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