Just as every action sparks a reaction, I can clearly remember the moment that spurred our decision to add a new brand and expand our company. Or, perhaps I should say that we recognized the undeniable need for change, and adding a new brand was the ultimate solution.
In another instance, adding an additional service line was the right answer.
How might your need for change bring you to one of these conclusions? In my experience, there are some key points to consider.
• What are the synergies? Consider whether the new service or brand will complement your core business or detract from it.
• How well can you support it operationally/administratively? Carefully consider the additional time and manpower this new service would require.
• How will it impact the branding or industry positioning of your core business? This is where marketing comes into play and, in my opinion, can play a large part in determining whether you expand your existing service offering or add a new brand.
• What is the long-term viability of the service or brand — is it sustainable? Are you dealing with something that is hot today but could become a passing fad?
• Is there a market for the product or service? An amount of new R&D will be required.
• What will your point of differential be? Again, is it different enough to warrant a new brand or will it better serve as a complement to your current service offering?
• If acquiring a business, how does it fit culturally? If the addition may compromise your culture, you may want to reassess.
