Using the Ansoff Matrix to Make Your Choice
So, you’ve made it. You’re a successful freelancer with a steady stream of clients. You’ve left behind the feast-or-famine cycle, and work seems to find you rather than the other way around.
But lately, you’ve been wondering: “Is this it? Do I just keep doing this forever?”
If you’re looking to grow your freelance business but aren’t sure where to start, the Ansoff Matrix is a great framework to use.
I learned about it, and used it frequently during my MBA studies. It was originally designed for corporations to identify growth opportunities. But it's just as valuable for freelancers and founders looking to scale or diversify their business.
Exploring New Freelance Opportunities with the Ansoff Matrix
The Ansoff Matrix offers four growth strategies, each with its own level of risk and reward.
You basically split the type of opportunity into a 2x2 grid (MBAs love a 2x2 grid). On one axis you've got customers either existing or new, and on the other, products. Again, existing or new. See the image below for what I mean.
Here’s a breakdown of the options, tailored for freelancers:
Market Penetration: Same products, same customers.
Market Development: Same products, new customers.
Product Development: New products, same customers.
Diversification: New products, new customers.
All clear? Let’s dive into each approach and explore how freelancers and founders can actually apply them.
Market Penetration: Scaling What Already Works
Type of opportunity: Selling the same products to the same types of customer
This strategy is about leaning into your existing market by doing more of the same for your current audience. For freelancers, this generally means setting up an agency. This enables you to sign up more clients, in a way that you wouldn't be able to if you stayed solo. You start to hire employees, or outsource work to other freelancers.
Pros:
You already understand the market and product.
Success could mean that you have a business you can sell later down the line.
Cons:
Managing others is a big mindset shift!
You’ll likely spend less time doing the work that got you here in the first place (which I assume you enjoy) and more time organising resources.
Example: A freelance graphic designer might scale their business by hiring junior designers. leaving them free to focus on client acquisition and team management.
Market Development: Expanding into New Niches
Type of opportunity: Selling the same products to a new type of customer
This approach is all about offering your current services to a new audience. It’s a relatively low-risk strategy, as you’re building on what you already do well but targeting new customer groups. Typically you'd start by looking at adjacent customers to the one you currently serve, ats they're likely to share similar needs.
Pros:
It's a low-risk way to expand your business.
Lets you test the waters in new markets.
Protects you from a sudden decline in your current market.
Cons:
It’s not a huge change, so it might not satisfy you, if you have a desire for something completely different.
May not significantly increase your income if you can't meaningfully increase the amount of work you complete.
Example: A freelance writer specialising in tech startups might expand into healthcare startups. As many of the client needs will be the same, there's a lower cognitive load to taking on the new work.
Product Development: Offering New Products to Existing Customers
Type of opportunity: Selling new products to your existing customers
In this strategy, you create new offerings tailored to your current audience. This might involve launching things like e-books, online courses, or workshops. The aim is to provide value for your clients, and add income streams for you. Often, there's the added bonus that these lower-cost offers act as an entry to higher priced 1:1 work with you.
Pros:
Adds "passive" income streams (with upfront effort).
Allows customers to engage with you at different price points.
Cons:
Developing these products can be time-intensive.
It’s easy to lose focus on existing client work while you build out these offers.
Example: A freelance marketer might create a digital course on social media strategy for small businesses. Once built, it ticks along in the background topping up their income.
Diversification: Venturing into the (semi) Unknown
Type of opportunity: Selling new products to new customers
Often the most challenging strategy, this involves creating new products for entirely new markets. Really though, this approach exists on a spectrum. At the lower-risk end, it might simply be selling products similar to your existing one, to markets you know well. At the higher-risk end, it might be something totally different, like real-estate investment! Diversification in the Wall Street sense of the word.
Pros:
Offers a chance to do something completely new.
Can open up significant new revenue streams.
Cons:
Requires the most research and planning.
Risk of confusing your brand’s messaging if you use the same platforms and approaches to market your offer.
Example: A freelance photographer could transition into teaching photography courses for beginners. Diversification is easiest when you leverage your existing expertise to address new needs.
Tips for Success, No Matter the Strategy
Start Small: Test the waters with smaller, low-cost projects.
Do Your Research: Understand the market and their needs.
Leverage Your Network: Your existing clients might be the first to support your new venture.
Plan Your Time Effectively: Avoid neglecting current clients while launching something new.
Summary: Growth Doesn’t Happen by Accident
The Ansoff Matrix offers a structured way to evaluate your growth options as a successful freelancer. Whether you choose to scale your current business, explore new markets, or launch new products, the key is to approach growth carefully. Start small, do your research, and take deliberate steps toward the next phase of your career.
What Next?
If you’re ready to take the next step but aren’t sure which path is right for you, let’s talk. As a coach, I specialise in helping freelancers and founders map out growth strategies that align with their goals and values. I've worked with a number of clients to launch new products, find new markets and scale profitably.
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