Success Happy

Successful business is looking for ideas to diversify?

I have a local successful contracting business. I own a large warehouse building and I have a very good sales person working in my office. I am wanting to utilize my sales persons abilities more. My initial thoughts was to sell some sort of products given I have the space to stock them. We also could do some light modification work to products if necessary. I am basically wanting to utilize the assets I have in front of me better, so I thought I would throw out the question and see what you all think.... let me know. Thanks!

Public Comments

1. Warehousing and storage space is in high demand alone. Use the space as unused space... Let me say that better. There are manufactures out there that over produce or that don't have room for storing product, or don't want it on there inventory. They are producing large jobs and the vendor doesn't want the merchandise until all the product can be shipped so they look for storage space. LOGISTICS, pick there freight up at a cost per pallet or skid and store it until said time of departure for a few easy bucks. There is more involved but it can be big, easy money!
2. If you're already paying for the infrastructure, then it makes total business sense to try and get more activity and income through those same assets. As my ex business partner used to say about incremental business "Gross turns to Net", meaning that if all your overheads are already covered, then for any extra business, the net profit is the same as the gross profit - ie it's far more profitable than your regular business. I suppose the questions you really need to ask are: 1. Does the new line sit comfortable with my existing business? eg Don't try and sell hotdogs through a clothing warehouse. 2. Is there a real demand for these new products? 3. Is the location of my warehouse suitable for this new line? 4. Will the new line bring in an acceptable level of profits? 5. Will the cost of getting into the market be reasonable compared to the potential profit? 6. Will the new business have any negative impact on the existing business? Whatever route you finally go, I'm sure you'll make a success of it as I believe you are thinking in the right direction. Good luck!