Looking to Expand Your Services? Start Here.
Growing your business can be an exciting but daunting process. Where do you start? You may consider adding new service lines to your existing offerings. If you do, you’ll need to be careful to avoid some of the common pitfalls that can occur; just because your business is thriving in one service, does not guarantee others will be as successful.
That being said, it can be done—and as a business owner who has successfully diversified my own offerings (and made a mistake or two along the way), I’m happy to share a bit of advice.
While I run a wellness business, the following tips and strategies can apply to any fitness and beauty business too:
Strategy 1: Grow through a network
If you’re interested in adding a new service but want to be more confident there will be a return on investment, consider referring out that business to start. Rather than taking on the risk, find another business to refer out to determine the amount of business that you could potentially generate. For example, if a massage studio is thinking about preparing and selling homemade smoothies, it would be worthwhile to first refer out to a smoothie bar a few blocks away. Then, track the amount of business being sent and determine if it’s enough to warrant bringing the service in-house. This strategy works especially well for businesses that don’t have the capital to fully launch a new service and/or want to preview business potential before making the investment.
Strategy 2: Start small and build to scale
Another option is to start small and build to scale. To illustrate, let’s use the same smoothie example, above. Rather than sending customers away, the massage studio can start small and grow as business allows. For example, the business might bring in someone to make smoothies one day a week or maybe a couple of hours per week. Then, as the service line grows, they can expand by adding hours, better equipment, and increased staff. Again, this allows for less up-front investment and helps gauge potential growth without having to jump fully into a new service line.
Whichever you decide...
Whether you choose to use one of the strategies above, or simply jump feet-first into offering something new, there are a few non-negotiables when adding additional services to your business:
Don’t lose your purpose. You started your business for a reason; stay focused on that. If you start chasing shiny objects, you may lose sight of your original goals.
Add complementary services. When looking to bring in additional service lines, stay with services and products that complement what you currently offer. For example, a yoga studio is probably not the best place to sell cycling shoes—unless you’re planning on adding cycle classes to your schedule.
Do your research. Make sure you know the rules and regulations of your area before moving forward. Whether it’s construction permits, insurance requirements, or food and beverage licenses, each city/state is different. Do your research ahead of time or it may cost you down the line.
Know your finances and schedule. Is it a good time to add a new service? Make sure you have both the funds and time available to manage and promote new offerings.
Don’t be stubborn. If you take a shot and miss, don’t be afraid to try again—but also, be able to recognize when a loss is a loss and accept it. Pull back and focus on your success.
Good luck in your new ventures and be sure to reach out to the Mindbody One community if you have additional questions or need support. You’ll find me there!