Four tips for business diversification: built outcomes
More clubs and large venues are diversifying their services and revenue streams. As a premium design and construction services company, Paynter Dixon is working closely with hospitality clients to ensure the road of diversification leads to their future customers and communities.
How can CEOs, executive management teams and boards approach the task of diversification? With more than 30 years of industry experience, Andrew Neagle, Strategic Development Lead – Hospitality, shared these insights.
Maximise your established revenue streams
Before embarking on business expansion, review your staple service offerings across food and beverage, and entertainment and gaming. Are the facilities outdated or losing appeal? “Diversification actually begins with your core offerings and ensuring they’re operating at peak performance,” says Andrew. “Modernised facilities will drive an increase in revenue which can help fund project delivery in your business diversification strategy.
Seek inspiration and your point of difference
Keeping tabs on other venues is a time-honoured tradition, but diversification has broadened that horizon. Hotels, child care centres, gyms, retirement villages, sporting complexes, medical centres – the list goes on. There are more avenues and models to explore, which highlights the importance of seeing these businesses up close.
“Paynter Dixon regularly joins clients in tours of businesses, venues, and complementary hospitality facilities whether in the Australian domestic market or further afield. International markets can provide exposure to new design concepts and sector trends, alternative business solutions, and a larger scale of development.
“For many clients, the research identifies a point of difference to pursue in their customer experience and service offering.”
Assemble the dream team
The American business writer Jim Collins famously coined the phrase “Get the right people on the bus” in his book, Good to Great. Collins was speaking specifically about employees, but the logic is equally applicable to the consultant team.
Paynter Dixon’s multi-disciplinary expertise is typically engaged to oversee every stage of the development life cycle from initial concept to completion. This is not to say external expertise doesn’t play a crucial role in this picture – quite the opposite.
“As principal contractor, we are no stranger to working with preferred suppliers, and typically source third party consultants as the client requires. For example, this may involve hosting a design competition, or inviting a select list of interior designers to present to the club’s board.
“We perform our due diligence to ensure consultants are not only ideal for the project, but also have the personal attributes for partnering on the longer journey.”
Harness the power of master planning
Planning is vital to mapping out the pathway of property development. “We identify the opportunities and manage the risk from the outset. Our master planning expertise underpins this process, mapping out the development life cycle with considered steps.”
Well researched, high-quality master planning can reduce budget pressures and strengthen confidence for cost management. “For example, this can involve staging the development to fast-track the introduction of new revenue-generating assets.”
Effective planning can even yield cost-saving measures – years into the future.
When constructing a new car park for Bankstown Sports Club, Paynter Dixon established the concrete foundations of a tower crane which remained dormant until the Club was prepared to commence construction of a hotel as per the master plan. The crane was installed with minimal cost and disruption.
Today, Paynter Dixon is supporting clients with a range of projects including:
A multi-storey development to revitalise the heart of Coffs Harbour. C.ex Group’s landmark CODA features ground floor retail, carparking and 95 stylish apartments.
A seniors’ living community with inviting green spaces.
A state-of-the-art service centre in Western Sydney’s highest growth corridor.
