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Thursday, 9 July 2009

Should I diversify into new markets?

Market Diversification – a strategy for success?

With the recruitment market place resting in such a precarious situation at the moment, recruiters are looking for new ways and means of generating revenue for their businesses.

Over the last 6 months or so we have seen a sharp shift in the number of recruitment businesses expanding their business propositions into new areas. The question is which are what precautions and processes should a business go through before taking the plunge?

Diversification is a form of growth marketing strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. It can occur either at branch or at corporate level. Generally within recruitment it will involve the movement of the business into a new sector of recruitment (such as opening a new division) or expanding their offering in terms of the categories of placements they are providing (i.e Permanent, Contract, Temporary etc).

The diversifying of your business into a new sector is not an exact science. The choices that you make will be dependent on a number of factors and will depend a great deal upon your existing business, your size, finances, location and the existing team that you have in place.

Recruitment Business Solutions Ltd provide a range of services to assist businesses in their growth and development. We have range of industry experts on hand to provide you with one to one support to help to guide your business through these turbulent times. To book in a mentor to coach you into your new target market and to assist you in a smooth transition, please call Alison Kennedy, the Director on 07712 477342 or email us

Top Tips:

Diversify Wisely
Chose a sector you can get passionate about
Research your market
Research your competition
Identify your differentiators
Yoke your strengths
Make sure you can reach to your new target audience

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