Staying Focused, Using Leverage

In business, there is a key distinction between vertical integration and horizontal sprawl. The strongest companies understand the process of adding value by expanding their service to existing customers.

Satisfied customers almost always WANT to do more business with you. Isn't that true in your own case? Once you find a store you enjoy, don't you go back over and over again? Once you establish a relationship with an accountant, attorney, doctor, dentist or other professional, don't you 'automatically' go back every time?

Highly successful professionals use this pattern to their advantage.

Chiropractors add products like supplements or exercise equipment. They may contract with massage therapists, physical therapists, nutritionists or other professionals to leverage the relationship with their patients.

The Veterinarian we've used for years has gradually expanded to offer grooming services, training and kennel services. They sell dog food, toys and can even help you locate the next family pet. One stop shopping, multiple sources of profit, improved customer loyalty. What a concept!

Many professionals mistakenly attempt to diversify into markets they do not understand or that are a poor match for their primary skills. They get spread too thin, and each business has to be created, funded and built individually, and that is hard work!

Instead, look for the logical, natural links that allow you to expand the relationships you already have, provide greater service and do more business with current customers. It's usually easier, more fun, and more profitable.

Copyright (c) 2003, all rights reserved. U.S. Library of Congress ISSN: 1529-059X From The Innovative Professional's (TIP's) Letter Sunday, March 9, 2003 Written & Published by Philip E. Humbert, PhD Contact him at: www.philiphumbert.com or email Coach@philiphumbert.com