“No tree can grow to the sky” is a maxim that has inspired innovative business leaders for decades. It essentially discourages putting all of your eggs in one basket, warns that any business — no matter how effective — will eventually top out, and suggests companies must branch out in order to stay healthy rather than continuing to reach skyward with one core service or product line.
Accomplishing that goal, however, is easier said than done. Companies face a number of challenges when they attempt to diversify their business base, including acquiring an understanding of new markets and the skills needed to thrive there. Fail as you seek to expand, and the repercussions can affect the stability of your company’s core business.
In my experience, the secret to launching a series of successful new branches is maintaining a sense of unity. Ideally, this involves expanding into areas where the characteristics that mark your business can be applied in new fields. The overarching goal should be the unification of all of the branches through the reapplication of core values and competencies.
The value of unification
Starting from square one is always challenging in the business world, regardless of the skills or experiences leaders bring to the table. Branching out can feel like starting over if the new business doesn’t share some commonalities with the old. Therein lies the power of unification.
For example, a successful home cleaning company seeking to launch a new branch might consider expanding into commercial cleaning. While the new endeavor would require a new approach to marketing and other business functions, it would draw upon many of the same skills and processes used in home cleaning. Launching a home inspection company as a new business branch would not have the same degree of unification.
This model gives a company a shared knowledge base that can empower greater efficiency and better performance across all bases. It allows for smoother operations by supporting standardized processes and training across all branches.
Launching unified branches also makes it easier for companies to achieve brand recognition for new endeavors, which can be especially valuable when launching into a competitive market. If the core business has a strong reputation, it can be leveraged to achieve instant brand recognition for the new branch.
Businesses that expand this way can also experience higher levels of innovation. The cross-pollination of ideas across branches fosters higher levels of creativity, resulting in innovative business practices that strengthen the overall company and make it more profitable.
The example of CIG Companies
I’ve seen this model applied with great success in the CIG Companies that I lead. Our unifying factors are luxury and sustainability. As we have built a company that provides products and services in both the real estate industry and the renewable energy market, we have developed separate but thriving branches by ensuring that each new endeavor has luxury and sustainability at its heart.
CIG Renewables, for instance, provides full development and asset management of renewable and sustainable projects, while CIG Development takes the same values and vision that drive CIG Renewables and applies them to real estate and project development, as shown in our Magnifica project. Magnifica is a high-luxury lifestyle brand building a greener future through its commitment to sustainable building materials and solar-driven power grids.
By adopting a growth model that prioritizes unification, companies give themselves a greater capacity for efficient and effective movement into new markets. The model leverages the strengths the company has already developed, giving them a higher chance of thriving in a new market. It also takes advantage of the knowledge and experience they have obtained, giving them a head start on other companies seeking to gain the attention and trust of potential customers.
– Charles Carey is the Co-Founder at CIG Companies, a Project Group focused on the real estate industry and the renewable energy market, including solar, hydrogen, and wind. CIG develops or partners with projects to build, fund, and scale projects successfully. Charles Carey is the founder of Live 80/20, a non-profit Christian-based foundation that supports other nonprofit organizations that serve His purpose. Charles Carey created an Instant Underwriting FinTech Lending Platform within minutes, a business can get approved. Charles Carey has focused on how to D-RISK investments and projects. He has experience in scaling businesses and brand development, team development, marketing expertise, entrepreneurship, investment, and business brand development with Fortune 500 type systems. His skills such as strategic marketing, business negotiations, sales systems, Go to market specialist, business acceleration, motivational speaking, high-level negotiating, and expert business consulting and research specialist.
