Business development to success and growing annual revenue growth concept, Businessman pointing arrow graph corporate future growth plan

Too often, San Diego entrepreneurs stretch their social network to its limits trying to find new customers. Many don’t realize that instead of utilizing everyone in their social network to increase revenue, they could instead diversify. Diversifying is an excellent way to help improve revenue streams with an existing customer base. 

Why Is Diversification Effective? 

Offering existing customers new products or services is an excellent way to help build your revenue stream. You’ve already developed a relationship with customers in your pipeline. Diversification helps ensure that they stay there. Diversification of your products and services is similar to the diversification that you’d implement into an investment portfolio. 

You don’t want to put all of your eggs in one basket because if those “eggs” fail, you’ll lose everything. Blockbuster is a perfect example. As the times changed and these businesses were unable to adapt or offer other services, they ended up failing. Giving your customers multiple options from which to choose increases the likelihood of longevity. 

The Defensive Diversification Approach 

When competitors enter the marketplace, the likelihood of customers from your social network leaving increases. The defensive approach calls for businesses to expand or adapt their product or service range to entice customers to stay. You can do this in a multitude of ways. Business owners could elect to modify existing products or introduce an entirely new line of products. 

Preparing To Diversify Products 

If you’re considering diversifying, you must weigh the long-term implications of doing so and whether you have the proper resources available. You must weigh whether the cost of developing a new product is less than the cost of marketing your existing products. You must also determine if your current product line is sustainable in the long run. 

We recommend sitting down in your flexible premium coworking space and conducting a budget analysis to determine if it’s worth going forward with diversification. Diversification could be a risky strategy, but it could end up yielding considerable dividends in the long run for your San Diego business.  


Please select a location below to schedule your Downtown Works Tour! We look forward to seeing you soon.

Edit Content
Edit Content
Edit Content


Join Our Growing Community!

We’re excited to announce the expansion of Downtown Works with not one but two new locations! Become a founding member and enjoy exclusive benefits, discounts, and more as we grow together.

La Jolla/UTC


Mission Valley



Valid now through 12/29/23.

Terms and conditions apply. Meeting must occur 12/26/23 – 12/29/23. Valid during business hours only. Must call to book or speak with a staff member.


We’ll be closed January 1, 2024 to allow our staff members to enjoy some time off with their families. We will reopen on January 2, 2024.

We’re still available to help. Choose your contact option below!