Situation: A company has established a strong core business and it is time to diversity. The most promising opportunity for growth is complimentary to but a different business model from the company’s core. What are best practices for maintaining focus on the core business while developing a new opportunity? How do you maintain focus on your core while growing?

Advice:

• Most importantly, be emotionally and strategically ready to make the bet and commit to action. In doing so you must “know thyself.” Specifically, take a long look to determine whether you tend to overanalyze or are too quick to pull the trigger. Understanding your tendencies will help in the steps below. 
• Establish the prerequisites for pulling the trigger. This means determining:  the level of operating stability for the core business that will allow you to split focus; the level of financial stability and predictability that will support both core and expansion efforts; and the level of organizational and process stability that will allow you to take on the new opportunity.
• Understand and define the differences between the old game and the new game. What are the financials of the growth opportunity? How do they differ from your core business? Are there conflicts that must be resolved? Can you launch an innovative solution to differentiate the new offering?
• Gather enough understanding of market need that will satisfy you with the new opportunity so as to be able to address it effectively.
• Establish a sound execution strategy and timeframe for launching the new business. Some of your decisions will be wrong. You need the resources to tolerate a learning curve while running fast towards your goal.
• Draft a leadership development plan for both the core and new business before you start. This plan must define the skill sets and growth needs of each business.

Thanks to Clark Avery for his contribution to this article.

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