Amid the current economic downturn, it can be tempting for service providers to accept any opportunity that comes their way, even if it involves stretching beyond their core competencies.

Big mistake.

While we still endorse diversification as ‘the mantra’ to capitalize on market inefficiencies, the company’s positioning and service capabilities carry much more weight.

Though an apparent paradox, it is important to stay focused and concentrate on your core competencies even while adding services to your portfolio.

Reason: The more you diversify beyond your core competencies, the more the competition. Furthermore, wearing many hats can limit the scope of your niche arena.

Instead, add more feathers rather than swapping hats to provide just about any service that is in demand. We suggest giving your existing competencies a whirl to diversify:

1. Unique positioning: Instead of merging in the crowd as a jack-of-all-trades, solidify your unique positioning by selling your enhanced specialized skills.

2. No restrictions: Don’t read specialized as limited. There is no limit to innovation in any field. Leveraging existing competencies, service providers can become resellers of niche products and services.

3. Value-add: Deliver more in the package. Enhance your current services to help clients develop more competitive advantages. Jean Conover, business development director at TradeMark Media suggests: “Now is the time to cultivate deeper relationships with clients and provide top-notch service. This way, your clients will come to rely on you as part of their solution.”

4. Customer participation: Customer feedback can help you gauge your competitiveness. If your client’s are using other service providers to support or enhance your service, you can find plenty of opportunities for focused diversification.

To further the aim of staying true to your core competencies and resisting the temptation of veering away, just go ahead and declare your focus area to your clients. A MarketingProfs article suggests: “Define one clear purpose for all that you do; that focus could help see you through until the upturn.”

After all, throwing your feathered hat over the fence leaves you no choice but to cross the fence and get it.