Wednesday, October 08, 2008
On Diversification In A Down Economy.....
The rule of thumb in a down economy is to diversify in order to survive. The thought is that with less work comes less money. So the obvious strategy is to increase your service offerings (aka diversify). Here's a recent press release from Florida.....
"BOCA RATON, FL -- Mamashana Services, Inc. announced that they will do even more for their customers than clean, including running errands and painting the interior of their houses since many people are having to work longer to make ends meet."
Nothing against this cleaning company, but they're wrong. The last thing you want to do is diversify in a down economy. The first thing you should do is strengthen your focus on your primary means of business.
There's a reason Ruth Chris is the best at serving steaks. And there's a reason Burger King is far from the best at serving hamburgers. Ruth Chris sells steaks. Great steaks - everyday. Burger King sells hamburgers... and chicken.... and fish...... and salads..... even breakfast. None of those menu items are overwhelming.
Diversification may be a great thing in the stock market. But it's a marketer's worst nightmare. The very definition of diversification explains the problem. It's defined as spreading the risk so that you can avoid major loss.
Spreading the risks means providing equal investment in each of your service offerings. And Burger King has already proven that you can't be good at everything. But you can be great at one thing.
So that's what Two Maids & A Mop is doing. We're not diversifying at all. We're not painting walls. We're not washing cars. We're not even cleaning your carpets like so many other cleaning companies.
We're cleaning your house. Everyday - we have only one goal. To be the most professional housecleaning company in the world. And that's a whole lot easier than being diversified.