Stretching Your Wings
[by Judy Herrmann]
A lot of photographers I’ve met recently are avidly searching for ways to expand their businesses and diversify their income streams. Some are exploring new technologies like digital video, Computer Generated Imaging (CGI) or immersive environments. Some are looking at education – joining academic institutions, developing seminars and workshops or creating information products like webinars, podcasts or DVDs. Others are offering a broader range of services by partnering – formally or informally – with others.
All of them, regardless of what direction they’re going in, are looking to expand beyond the core competency (still photography) that’s been the mainstay of their careers.
A 2006 Bain and Company study of US retailers expanding into adjacent businesses offers some valuable insights that anyone looking to diversify should consider. The study discovered three principles that dramatically increase the chances of successful expansion:
1) Look for new businesses that are close to your core business.
2) Concentrate on markets with larger profit margins than your core area.
3) Estimate the potential for growth in that market before entering it.
The companies Bain studied that didn’t follow any of these principles had just a 6% success rate. Those that followed one principle increased their chances for success to 30% while those following at least two of these principles had a 60% or higher chance of success.
Go here for the full study.
One Response to 'Stretching Your Wings'
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Judy,
Thank you, this is right on target!
Gail