You've managed to develop a winning formula for a healthy business, but how long will that health last? The most successful businesses are not 100 percent reliant upon one source of revenue. Diversifying your business means having different streams of cash coming in, in case one dries up. This can be the difference between your business surviving or failing. Don't be blindsided by a wave of misfortune because you put all your eggs into one basket.

Diversify your product lineup

Think of ways to make adjustments to your product or service so that it appeals to a different or broader group of people. For example, if you have a "high end" product or service, consider offering a less expensive, stripped-down version that will attract people not willing to spend as much. Just be sure that your new offering doesn't hurt your existing business. Your original offering needs to remain appealing to the segment of people it currently serves.

If you can find a way to serve a different market without putting your operations in financial dire straits, you may be able to come up with a whole new revenue stream that will help you thrive if your main source falters. Forklift dealer Springer Equipment, for example, found a new revenue stream by selling parts from their own scrapyard, in addition to the machines themselves.

It may behoove you to start selling a product that is related to what you're already selling. If a customer has to purchase another product or service to go along with what you're offering, this might be an opportunity to eliminate the need for them to go elsewhere. If it's within your means, invest in offering that companion product or service and reap the sales for both. You might even consider an acquisition for this very purpose. You may even qualify for financial assistance to help with that.

Apply processes, data, and experience to a different industry

Diversifying your business might mean expanding into a different space altogether. If you'll recall, Google was once just a search engine company. Amazon was a bookseller. Apple was a PC manufacturer. These days, you'd be hard pressed to find a facet of everyday living that isn't touched by one of these companies.

You don't have to be a tech giant to expand your horizons. Take a step back and look at the nuts and bolts of how your business works. How could your processes be applied to a different space? Your company has experience in sales, management, etc. How could this same workforce, or even a scaled-up version, be utilized to test the waters of a different field of play? Hopefully, you're passionate about your current business, but you may feel equally passionate about other interests: ones that might bring in revenue with the right amount of focus and preparation.

If your business has data that can be applied to this new venture, you'll already have a head start. You will, however, want to make sure you have a firm grasp on what makes this industry tick before you dive in. Spend some time following the industry and absorbing all the knowledge you can so you can put your best foot forward.

Cover more ground

Another avenue of diversification is that of location. Any new market is a potential new revenue stream. The most logical way for a successful business to tap into a new market is to open a location physically within that market. In fact, as an SBA preferred lender, Nevada State Bank can help you finance a new building with an SBA loan.*

Research potential markets and see if it makes sense to open a new location across town or even in a different city. If you currently operate only as an online business, consider adding a physical location if it makes sense. If you only operate as a brick and mortar location, add an online component to reach people outside of your area. The more ground you cover, the more opportunity to generate revenue.

Smart business owners, like smart investors, place a high value on diversification. There are ways to help your business fire from multiple cylinders so that if one misfires, the others can carry the burden. Just be cautious in not diversifying to the detriment of your main source of revenue.

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The information provided is presented for general informational purposes only and does not constitute tax, legal or business advice. Any views expressed in this article may not necessarily be those of Nevada State Bank, a division of Zions Bancorporation, N.A. Member FDIC