This article was written by Kevin Dennis, editor of WeddingIQ.
Diversification is one of the key ways that owners of event businesses can boost income, attract new customers and ensure longevity in our competitive and dynamic industry. Once you have decided which complementary products or services to add to your business, (or other businesses you might acquire), you’ll need to get the word out and make sure your new branding makes sense to your market and peers.
What do you need to consider when branding your newly-diversified services?
The new you
As you expand your business offerings or choose new products and services to complement your brand, it’s important to have a distinct brand identity that encompasses both brands. For example, at one time Fantasy Sound was comprised of separate companies, one for DJ services and one for AV services. The names were similar, but the branding was different and people were confused. We fused the two companies together to create Fantasy Sound Event Services with a unified brand and our business took off.
Determine how the services relate
Wondering how to fuse your services into a single cohesive brand? Go back to the market research that you did before you diversified. You determined that your clients had additional needs and you had the product, skill and talent to fulfill their needs, right? Reflect on what you discovered about your clients during that phase and try to come up with a way to project a brand that addresses all of the needs you are able to meet.
Of course, you’ll also want to identify the biggest strengths of each brand. What are you bringing to the table that is unique to your business and superior when compared to competitors? It’s very similar to the process of branding your original company – you need to know your target market and how to identify those characteristics of your business that meet their unique needs. Then make sure you’re appealing to them and reaching them with your message.
Avoid this common mistake
The biggest mistake that business owners make when taking on a new brand and merging it with their existing business is not realizing the amount of time and the scope of work that the new brand requires. More often than not, the process is not as simple as “plug and play”. You’ll have to go back to the drawing board to create a new brand image, and success will take time. Plan for this when doing projections, managing income and revenue, and preparing for a period of challenging days, weeks and months ahead. But know that your efforts will be worth it in the long run.
Measure your success
Constantly evaluate your efforts once you have established your branding and always review the numbers on a regular basis. Acquiring a new brand absorbs a lot of capital in the beginning and you may not see a return for a while, so stay mindful of the overall trend. Set goals and determine what success means to you and how long you are willing to wait for it.
Creating a cohesive brand for your original company and your acquisitions may not have been the exciting part of diversification you were waiting for, but it is critical. Done well, it will likely be the key to your success.
Kevin Dennis is the owner of Fantasy Sound Event Services, a full-service event company based in Livermore, California. Dennis is the immediate past chapter president for Silicon Valley NACE, and national vice president for WIPA.