When launching a complementary, add-on product or service or distantly related service, should we create a totally separate company or brand, or an in-house division?
Enter the Project Grow Challenge presented by Entrepreneur and Canon USA for a chance to win up to $25,000 in funding for your business. Deadline is Sept. 15 2015. Click here to enter.Look at your current database as your greatest asset and keep your new brand under the existing business for the time being--but only if it is truly complementary to your current product or service offering.
Depending on your product or service, it may be a great add-on to your existing line and could encourage larger purchases. If, however, it is not complementary (which you will discover soon enough by marketing first to your existing database, either by phone, walk-in or via opt-in e-mail), you may want to explore a new brand that exists as a stand-alone.
Trying to push a new product or service to your customer base that is too far outside your current business scope does cause you to lose focus. In that case, you are better off going after a new audience under a new brand.
All the best.