Logically, and has been said by others over the years, you can take new services to old clients, old services to new clients, or, with more of a stretch, new services to new clients. Replace the word “clients” with “markets,” if you want a broader perspective. The old services to new clients and markets is an excellent way to extend one’s offering. You point our that you may need someone with market knowledge in the new industry to help with language and other differences.

Of course, one can overreach here, too. A company that has worked on supply chain for retailers and manufacturers, who tries to extend the market to pharmaceutical companies and hospitals must learn fast how to deal with such concerns as the potential for a stockout to cause someone’s death, the need to meet FDA standards and many other differences, which are consequential. So, it can have many of the same overreach risks that developing new services for old clients has.

Thanks for the comment.

Ford Harding

Here’s some context that moves this point beyond 101:

I have a client with deep expertise in one specific retail category. But there are contiguous categories that would find relevance in their offering. The principles, technology and strategic chops are the client’s engine. But the company can sub-contract the language intricacies of the new category (on a short-term basis). Sadly, our economy has put a lot of smart people on the street. This is now for sale. New people to the firm - even on a sort term basis - can bring relationships, new contacts, etc. All of which can be leveraged by the hiring company. So long as the new staffer is fairly compensated.

While it may not be possible to go after the really big guys in a new category, there’s nothing wrong with honing the story by working on smaller players. Then tackling the biggies!

Great story! Helpful, too.

Ford

Thanks for your comment. Actually, my assumption was that “we won’t really know unless we actually try it, so…” and then hedges, as Ford noted…

Good question, Ford. I hope our group doesn’t have to go there…

Frogs…??…ask the feng shui crowd…

Andy

Many thanks for all your comments. Martin, I like the simplicity of your idea. It’s a good rule for a small firm like mine. Do you think it applies to large ones with deep pockets, too?

Kathryn, your comment is a good reminder that innovation may be in the way we structure and price traditional services.

Andy, your comment implies that even if we decide that it is a go, we should recognize that the judgment be faulty and we should hedge. Where do I get the frogs?

Ford

To me, your response assumes that the overreach problem has been decided in the “No, it’s not” vein. If so, then you make good suggestions, but if one carefully reviews the question at hand, it’s being asked how/when does a company decide if an “innovation’ is not really at innovation but an overreach of their capabilities.

Martin

Have hard check-points with “go or no-go” options and exit strategies.

Cross your fingers and put a frog in every corner.

One change I’ve made recently is to restructure the way I sell my products and services without affecting my rate. In the past, a prospect might have a $24,000 budget, which translates to a $2,000 monthly retainer. My business model requires a minimum of $2,500 as a monthly retainer. My recession solution? Structure the $24,000 budget as eight $3,000 monthly retainers. The benefit to the client is that we choose the most effective, possibly non-consecutive months, to do the public relations work. This works beautifully tying the work to trade shows, etc. The benefit to me is not taking monthly retainers below my profit margins.