Hybrid Business: A Safe Bet?

businesses, if not done properly, can lead a company to failure. Avoid it …

In the business world, the term hybrid business has started to be heard. What appears to be a trend is actually a way of diversifying a company or business. Diversification, after all, is a big part of the success of great companies in any industry.

What is a hybrid business?

The term is used to refer to businesses that are in some way both sustainable and profitable. That is, it has more than one product or service. While one part is paid, the other may be free.

One of the most notable cases is that of the WikiHow web portal, dedicated to showing written tutorials on how to do something. There are all kinds of instructions. Although users do not pay, they have access to informational benefits that are made available to them by the web team. The web, however, does generate income thanks to the sale of advertising space within the portal.

There are those who consider as hybrid businesses also those that start by selling a product or service, but then add an addition that no other competing business has. Usually these are offers that are related to the industry to which the main product or service belongs. It is important that the differentiating value is unique, because imitations cannot add an extra amount in cost.

How to do what functions?

Hybrid business models are complicated. It is easy for a business to fail if the importance of each of the services offered is not properly balanced. If one part of the business has a bad reputation, the rest can fall along with it.

It is important, however, to communicate properly. The company must ensure that the client knows all its services and proposals, and is willing to pay the additional price for it.

For this, various factors are used. From the employee who can communicate the varieties directly to the customer, to the physical spaces of the store or establishment, or advertising. It is also important that the person understands that if they are not willing to make use of all the services or products of the company, they can choose to acquire only one of them without any obligation.