When I sent a financial report yesterday on my (per)blog activities for Q2 2018, I wrote, in fact, that the keyword in my company was diversification.
In the context of revenues, there are two types of diversification. The first is a mix of contracts, e.g. an employment contract and a company, which I highly recommend as long as you are able to spin everything in time. The second, in the form of a business model, is where a company, usually composed of several brands, provides different services and/or offers different products to different target groups in order to minimise risk.
In general, the concept is broad and diversification can also be mentioned in the context of a single brand development strategy, but this is not the case today. Today, I will discuss the subject in its entirety in the context of the company and not of a single brand, because exactly in this business model my company also operates. What I very much appreciate.
diversification
multicompany
diversification
Diversification in practice means that I have several sources of income, from different brands operating within a single company (not to be confused with different customers). More specifically. My company now consists of three brands offering different services and products:
Ctrl Alt Create – where we cooperate with corporations and provide training for them in the area of management, sales standards, communication and (not too often, but sometimes) outplacement. We also create websites from A to Z as well as other graphic designs. Creative agency – within the framework of which we cooperate with corporations and conduct trainings for them in the area of management, sales standards, communication and (not often anymore, but sometimes) outplacement. We also create websites from A to Z as well as other graphic designs.
Monkey Business | mnkb – where we do budget, but cool blogs for cool bloggers, websites for freelancers, graphic designs, we also take care of technical support and operate several corporate blogs reading. we create content for blogs and SM. Agency – where we do budget, but cool blogs for cool bloggers, websites for freelancers, graphic designs, we also take care of technical support and operate several corporate blogs reading. we create content for blogs and SM.
Lazy BuJo, and I am currently working on another blog on defining and achieving professional goals) Refined blog, where you are – where I am open to commercial cooperation with brands, running workshops and selling my own products (so far it has been an online office – and now I am working on another blog on defining and achieving professional goals)
diversification
why?
diversification
The basic question is what is the reason for this? Why spread the offer over several brands, if you can act with one and what does it mean at all? I am already translating.
Different target groups
Why should I create a target group I’ve already written, so it’s best to start with this text. Did you come back? Perfect! You already know that different target groups are connected with different way of communication (also visual), somewhere else a representative of one group spends his time, something else is important for him and others have problems that you can solve with your product/service. Attempting to do this under one brand is at the very least cumbersome and causes inconsistencies, causing confusion for customers.
Example. If you promote your offer to mothers more strongly at a given time, it is likely that girls who are not mothers will leave. If you do it in separate brands, you immediately attract the right target group, who knows what to expect from you as a company. This minimises the risk of losing potential customers.
Distribution of costs
When you run a business you have to bear some costs. On my example. When I was building Ctrl Alt Create I had to invest in hardware, software and people. When the Refined or Monkey Business brand was created, I did not have to do it anymore, because I use those I had bought earlier from Ctrl Alt Create. As a result, this cost is spread over three brands and proportionally lower in the context of the total revenue generated. And, of course, invariably, especially at the beginning, I encourage you to spend your money wisely so that every cost can be justified. We know.
3 Risk reduction
4 Number of customers
Also linked to risk, but slightly different. In general, the least stable companies are those which generate over 30% of their revenues from a single client. In a multi-brand company, it is easier to attract more customers who ensure its stability.
Seasonality
Many companies are affected by seasonality, which is quite natural. However, if you prepare your offer in different brands complementary to each other, then you have a chance to avoid seasonality at the same time. This is also one of the reasons why I chose the Monkey Business brand from Ctrl Alt Create.
Simply the corporations (the Ctrl Alt Create target group) did not need any training during the holiday period, nor did they order graphic designs, because they resigned.