How Using a Multi-Brand Strategy as a Business Platform Can Maximize Revenues

In your everyday lives, you probably can name a whole list of different brands that you use on an everyday basis. Many people don't realize that the same company owns many of these brands as a part of their multi-brand strategy to capture market share and grow their revenues.

Let's look at these brands for instance: Crest toothpaste, Gillette shaving cream, Pringles chips, and Duracell batteries. They all seem very different, right? Many are surprised to learn that they are all owned by the same company, Proctor & Gamble, or P&G for short.

This is incredibly common in the business space as brands would rather diversify their product offerings so they can crawl across different market segments to capture as many customers as possible.

This strategy isn’t only limited to large corporations, however. As a small business owner, you can leverage these same principles to grow your revenue channels, and control various market segments. Here are a few things to consider to help you get started:

Don’t Lock Yourself in a Box

If you specialize in one product or service, you should always seek new ways to expand your market reach as a financial and branding strategy. The whole point of starting a business is to scale it one day to start bringing in millions! To accomplish this, you need a business platform that effectively grows your market share.

Finding Complimentary, Yet Different Products

Let's look at P&G as an example again: they mostly specialize in bathroom essentials, but they also expanded into seemingly unrelated markets; what do batteries and chips have to do with toothpaste and shaving cream?

Well, they both fall into the "essentials" category. People need batteries in their everyday lives to power their remotes, electronic devices, and electric razors. Pringles are also something that many people eat regularly, and they are an easy sell.

The goal is to find products that aren’t too far out of your wheelhouse, while also being able to target different markets. A good way to get your mind working is to put yourself in the customer's shoes. If you were buying your existing products, what else might you be interested in? Create a list of products that would fit their profile that are in a different market and work from there.

Getting Started

Once you’ve established that you’ll follow a multi-brand business strategy, here are a few tips that will save you tons of headaches when it comes to paperwork:

• Start with one main company registered as an LLC where you’re physically located.

• File DBAs (Doing Business As) for each of your other ventures (brands) within the same state or country.

• Make sure that your DBAs have different names, so you have all of your legal measures in place.

• For taxes, you can take all of the income earned by your various ventures and report it under the main business. This will vary depending on where you live so it might not be a bad idea to consult with a tax professional.

With a multi-branding strategy, your business should begin to grow and reach new revenue milestones much faster than before. For more business strategies and guides, be sure to check back on this blog in the future!

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