All paths are valid, but each has its advantages and disadvantages.
Market penetration: This means doing more of the same. In this case, getting more neighbors to sign up for the yoga program. One of the advantages is that it is the easiest path of all, since it is known: I work with a australia business email list product/service that I am familiar with, and with a type of client that I know. That is why it is usually the first path chosen by entrepreneurs. Unfortunately, this path also has a drawback, and that is that it has a “ceiling.” The yoga center had already covered the entire neighborhood, and it was not going to find many more neighbors who were interested in signing up. There was not much more room to grow along this path.
Product development. This means selling other types of products or services to my current clients. In this case, offering new products and services to the same neighbors. This can be a good idea, because if you already have loyal clients, why not sell them something else? The risk is that no matter how much we know the clients and their preferences, selling new products and services also involves learning. For example, giving mini courses to the neighbors involves other types of knowledge and skills. What course topics would be interesting? Can my yoga instructors teach classes on other topics? Do I get teachers from outside? How much do I charge for this service? And as many entrepreneurs know, many mistakes are made at the beginning. When starting with a new product or service, it is very likely that you will end up paying for your novitiate, at least at the beginning.
Market development. This means selling the same thing I already sell, but to a different type of customer. In this case, offering a subscription to students who are not from the area. This can be an excellent idea when my current market is already captured. But it has the challenge of reaching a new segment. Will the students value the same thing as the neighbors? Will they have the same willingness to pay? How do I get them to come? How can I make my center known outside my neighborhood? Working with a new segment brings important lessons, understanding that even if you sell them the same class, it requires a different sales job.
Diversification. It means doing something new with a new segment. In this case, offering spaces for psychological consultations. The good thing about it is that it allows us to put our eggs in different baskets. It can be less risky, because we don't depend on just one type of business. Unfortunately, it is the most difficult path, because if you think about it, it is almost like starting a new business. The difficulties of product development and market development are combined in the same strategy. Despite the difficulties, it can be an excellent way to earn more money, and it can certainly be the right path for businesses that can be projected to no longer have room to grow in the future. (It reminds me of a business that sold CDs and was on the decline: clearly diversifying seemed like the best strategy.)
Although all paths are valid, it is important for the person undertaking to consciously decide which path to follow, knowing the pros and cons of each one. It is also advisable to choose one, or at most two paths, in order to grow at the same time. Trying all four at the same time is not usually successful, since it requires learning too many things at once, and if you try to do too much, you do too little.