Australian Financial Services Directory  








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Hot Management Tips ...

“Misfit” Lines ...

Avoid handling new products or services which are not compatible with your present lines. Such “misfit” products usually don’t work because:

  • customers don’t expect to buy them from you, so they don’t think of you when they need them,
  • your expertise probably is not as well matched to that new line as to your existing lines,
  • your staff will not give it sufficient attention, or worse still, they will give it too much attention. So the less-glamorous line will suffer, and
  • your existing pattern of capital expenditure is probably not well matched to the “misfit” line.
If you want to take on a non-compatible line, and you have the money, it is usually best to form a separate division, or even a separate business.