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Spin Off a More Lucrative Business

Is your business unprofitable? Spin off a new profitable business. Here's how.

The business you start today may not be the business you run tomorrow. Entrepreneurs and self-employed individuals sometimes find that their initial attempts to start a business don't bring in the profits they had hoped for. But the most successful don’t give up or resign themselves to low profits. Instead, they use the contacts or knowledge they pick up running their first business to develop lucrative new profit-making opportunities. You can, too.

The secret? Learn from your mistakes, listen to your customers and keep an eye on trends.

For instance, if your auto repair customers complain about having to drop off their cars for routine maintenance, consider the feasibility of spinning off a mobile maintenance and tune-up service.

Do your craft store customers “ooo and ah” over your hand-painted furniture and then ask for your advice on painting furniture instead of buying your goods? If so, offer decorative art classes (for a fee, of course) and teach your customers how to paint designs on objects, themselves. To maximize income, sell the paints, unpainted furniture, patterns, brushes, finishes and anything else they’ll need for their lessons and future projects.

Where can you get ideas for spin-off businesses? Your customers are a key resource. Listen to their comments. Watch how they shop. Ask if they found everything they were looking for. Ask what they like and don’t like about your store, products or services.

Read popular business magazines for trends, too. Reading what others are doing to build their businesses can help you spot new opportunities in your own business.

Finally, research your idea before you jump in. Find out who else is doing what you want to do, and how they really make their money. The answer might not be obvious. 

© 2006 Attard Communications, Inc., http://www.businessknowhow.com May not be reprinted or reproduced without permission.

About the author:
Janet Attard is the founder of the award-winning  Business Know-How small business web site and information resource. Janet is also the author of The Home Office And Small Business Answer Book and of Business Know-How: An Operational Guide For Home-Based and Micro-Sized Businesses with Limited Budgets.  Follow Janet on Twitter at http://www.twitter.com/JanetAttard.


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