Running a business is quite the adventure. We start with an idea that begins getting traction and people pay us for that idea; then the snowball starts rolling downhill, and our goal becomes to not only avoid getting run over while keeping up, but also to make sure it doesn't hurt anyone else. Somehow in that "survival mode" we can lose sight of our creativity and strategy, and we settle for the comfortable. Before you know it, you have a safe and secure scope of business with a defined customer base. Or maybe that was just me.
Yes, we should become the thought leaders in at least one area because no one wants to be a Jack (or Jill) of all trades, master of none. But on the flip side, did we pigeonhole ourselves into a corner? If all our eggs are in one basket (a single revenue stream and/or avenue through which we are paid for our services) what happens when the next pandemic, recession, invention comes along and wipes out that customer base? What do we do then?
Most of us settle into what the market tells us we do well. That absolutely makes sense. If we started with birthday parties, weddings can seem daunting. If we start with corporate catering plated dinners sound impossible. And yet these opportunities exist for all of us.
We can diversify our revenue by working in different service styles: action stations delivery, full service, plated, family style, happy hour, weddings, pop-ups, galas, and end of life celebrations. There are many more and there are some yet to be created But each represents a unique stream of revenue for your operation.
We can also diversify our revenue by exploring different vertical markets. In the B2B world each industry/customer will have differing industry and individual needs. How can you best fit them? Some of those industries and customers include: biotechnology, legal, community based organizations (aka non-profit), funeral homes, real estate, telecommunications, municipalities, facility management, etc. Each has a customer model (avatar). Once you understand what they need, you can meet it. If you can meet it for one…
Consider for a moment that your business is built on a corporate catering model. During the pandemic no one was going to the office. What happens to your revenue? Post-pandemic, they may or may not be going to the office. What do you do now? Well even though many office workers went remote, there were still essential workers. And in the case of the latter, there is a movement afoot to bring those workers back to the office and there are individuals (chief workplace officers, people officers, managers of hospitality and events, et al.) and departments (workplace services) tasked with making the office the place to be. If you can provide a solution for one…
Diversifying can be more than just the types of services we provide or vertical markets we serve. We can also diversify our marketing and sales strategies. Salespeople are necessary, marketing is necessary. But we can also create power partnerships (event producers, social influencers, local movers and shakers, et al.) so others can provide us opportunities when we aren't even in the room. Instagram, Facebook, and TikTok will bring the B2C eyeballs to our brand. While Linkedin, Google, review sites, and email campaigns reach the B2B eyeballs.
These are just a few ideas to get your creative juices flowing. Because we (caterers) make the world a better place. We bring joy and foster community. So, the world needs us. It is then our responsibility to be available for all the parties, meetings, and events. So, take a moment to step outside the operation to look at the forest, not the trees–that obstruction will be there when you finish your strategizing anyway. Focus on running the business rather than letting the business run you. Diversify your revenue streams so it is more difficult for any one event to crush your operation. And please, for the love of food, please get your money.
