By Neville Chaney
No matter how many years a business has been in operation; good, bad, or mediocre; there is always something its owners and managers must consider: business diversification. Now my definition may be different than others, yet whenever it comes to my attention, I tend to look at with a broader viewpoint. In other words, one can add or delete products and services, but equally important are the changes that you can make in the way that you deliver them.
WJ Office began as an office supplies, office furniture, and typewriter/calculator company. Imagine our existence if we had not changed our offering. You’d have to imagine it because WJ Office wouldn’t exist!
Not too long after we started the business, we decided that we needed to expand our income streams beyond relying on what the company president could sell and deliver on his own. Thus, the opening of a retail store. As the 1980s wound down and personal computers replaced word processing typewriters, we moved into that space. As the computers became more powerful and we realized that the only customers WJ had were folks who chose us because they didn’t want to pay for support from our larger competition. We realized that we needed to have a product that could provide more recurring income and was needed in every office. Hello copiers!
Ouch! The early 2000s brought Staples and Walmart to town. Both were located within a mile of our store. Their arrival made a drastic impact on our walk-in business. The answer – build a commercial office, showroom and warehouse facility and emphasize items that Staples was not emphasizing. Say goodbye to retail and focus on commercial furniture, office products, and equipment.
The last 15 years have seen WJ Office add janitorial and cleaning supplies (and equipment), food service disposables, managed print services, warewash and laundry products, and office moving services.
It’s not just entrepreneurs who analyze, reflect, and pivot. A recent change in the way that another local business has reacted to changes in the marketplace is Chick-Fil A. Limited geography. More business that it can comfortably handle through its drive through. Blocking traffic for folks trying to get to its neighbors. Answer: Create a second drive through.
So, business diversification really does assume many forms. What’s your story and what are your plans? We’d love to be part of it with you.