Liz McKeon, clinic business expert and founder of the International Salon Business School.
Diversification occurs when a business develops a new product or service or expands into a new market. Often, businesses diversify to manage risk by minimising potential harm to the business during economic upheavals. The basic idea is to expand into a business activity that doesn’t negatively react to the same economic downturns as your current business activity. If one of your revenue streams is taking a hit in the market, one of your other divisions will help offset the losses and keep the company viable. Clinics can also use diversification as a growth strategy.
Diversification can happen without spending more money or having to hire extra staff because it can be more about using wasted resources than investing more money into the clinic. Diversification can either help you tap into exciting new markets to take advantage of high potential growth, or it can simply fill a niche that satisfied your existing client base. Both ends of this approach will help you grow the clinic with very little added investment or expenses.
Tips for getting creative about diversifying your company’s cashflow:
1. Put yourself in your ideal client’s frame of mind.
When considering adding new revenue streams, products or services, start by focusing on your ideal client and what they need most right now. For example, ask yourself what your client’s day looks like, or what worries or keeps them up at night. Next, ask yourself how you can make their lives easier or take away those fears. Build your clinic around serving the clients you love, and you can never go wrong.
2. Promote your ‘unique selling point’.
The clinic industry is a very competitive battleground, so make sure to stand out from the crowd, by articulating what is it exactly that you do and why you do it. Keep on brand and always thing outside the box.
3. Reinvent yourself and your clinic.
What do you sell that can be promoted in a new way or can be used in a different way? Think products, people, equipment, brands or space? Just try it and see how clients respond.
4. Make it an internal challenge.
You can’t do it all on your own all the time! Set up an ‘internal challenge’ and ask everyone on your team to come up with three ideas of how the clinic could maximise current strengths such as database, brands, opening hours, improve occupancy, team skills, location, neighbouring businesses, reviews, website, social media platforms and reputation.
5. Revisit opportunities you’ve previously shied away from.
Optimising current revenue streams always requires focus, and sometimes outside assistance. As the industry re-opens now is the time to explore all opportunities to safeguard your business going forward.
6. Think both short-term and long-term.
In an ever-changing economic landscape it is important to always consider both short-term and long-term challenges and solutions. Difficult times often lead to changes in the way the world operates. Develop products and services that not only solve today’s challenges, but will help you to thrive in the new, post covid world.
7. Ask your clients.
For the vast majority of clinic businesses, don’t try selling yesterday’s problems with solutions for today – because they won’t apply. Never assume without asking your clients: interview or run a client survey about their current challenges. Try calling them directly rather than mass emailing every so often. Remain open to pivoting a new offering aligned with where you are heading post crisis.
8. Support your clients where they are.
During disruption, it’s critical for businesses to be agile and adaptive. Make it easy for your clients to engage, relate and purchase from you. Identify where your client is searching for information or support and be there.
9. The only mile that matters in business is the extra mile.
Look at your main income producer. How can you do this better and continue to offer a unique solution to the concerns presenting themselves? Reach out to clients, provide support and go the extra mile, as your goodwill turns into more paid activity and a reputation money cannot buy.
10. Revisit your ‘customer service journey’.
It is necessary that you send out a very clear message that your clinic is here to stay and you are great at what you do. Providing outstanding customer service is the key to positively differentiating your clinic from your competitors.
Crisis is the time for clinic owners to shine. When things are going well in a booming economy, ‘everybody’ seems to do well. During a crisis or economic downturn is when real leaders stand out. Getting creative about diversifying your company’s cashflow will get you through the tough times and beyond.
Diversification occurs when a business develops a new product or service or expands into a new market. Often, businesses diversify to manage risk by minimising potential harm to the business during economic upheavals. The basic idea is to expand into a business activity that doesn’t negatively react to the same economic downturns as your current business activity. If one of your revenue streams is taking a hit in the market, one of your other divisions will help offset the losses and keep the company viable. Clinics can also use diversification as a growth strategy.
Diversification can happen without spending more money or having to hire extra staff because it can be more about using wasted resources than investing more money into the clinic. Diversification can either help you tap into exciting new markets to take advantage of high potential growth, or it can simply fill a niche that satisfied your existing client base. Both ends of this approach will help you grow the clinic with very little added investment or expenses.
Tips for getting creative about diversifying your company’s cashflow:
1. Put yourself in your ideal client’s frame of mind.
When considering adding new revenue streams, products or services, start by focusing on your ideal client and what they need most right now. For example, ask yourself what your client’s day looks like, or what worries or keeps them up at night. Next, ask yourself how you can make their lives easier or take away those fears. Build your clinic around serving the clients you love, and you can never go wrong.
2. Promote your ‘unique selling point’.
The clinic industry is a very competitive battleground, so make sure to stand out from the crowd, by articulating what is it exactly that you do and why you do it. Keep on brand and always thing outside the box.
3. Reinvent yourself and your clinic.
What do you sell that can be promoted in a new way or can be used in a different way? Think products, people, equipment, brands or space? Just try it and see how clients respond.
4. Make it an internal challenge.
You can’t do it all on your own all the time! Set up an ‘internal challenge’ and ask everyone on your team to come up with three ideas of how the clinic could maximise current strengths such as database, brands, opening hours, improve occupancy, team skills, location, neighbouring businesses, reviews, website, social media platforms and reputation.
5. Revisit opportunities you’ve previously shied away from.
Optimising current revenue streams always requires focus, and sometimes outside assistance. As the industry re-opens now is the time to explore all opportunities to safeguard your business going forward.
6. Think both short-term and long-term.
In an ever-changing economic landscape it is important to always consider both short-term and long-term challenges and solutions. Difficult times often lead to changes in the way the world operates. Develop products and services that not only solve today’s challenges, but will help you to thrive in the new, post covid world.
7. Ask your clients.
For the vast majority of clinic businesses, don’t try selling yesterday’s problems with solutions for today – because they won’t apply. Never assume without asking your clients: interview or run a client survey about their current challenges. Try calling them directly rather than mass emailing every so often. Remain open to pivoting a new offering aligned with where you are heading post crisis.
8. Support your clients where they are.
During disruption, it’s critical for businesses to be agile and adaptive. Make it easy for your clients to engage, relate and purchase from you. Identify where your client is searching for information or support and be there.
9. The only mile that matters in business is the extra mile.
Look at your main income producer. How can you do this better and continue to offer a unique solution to the concerns presenting themselves? Reach out to clients, provide support and go the extra mile, as your goodwill turns into more paid activity and a reputation money cannot buy.
10. Revisit your ‘customer service journey’.
It is necessary that you send out a very clear message that your clinic is here to stay and you are great at what you do. Providing outstanding customer service is the key to positively differentiating your clinic from your competitors.
Crisis is the time for clinic owners to shine. When things are going well in a booming economy, ‘everybody’ seems to do well. During a crisis or economic downturn is when real leaders stand out. Getting creative about diversifying your company’s cashflow will get you through the tough times and beyond.
