Diversifying for success

KERRY HAMMOND, PRINCIPAL CONSULTANT, AND CALUM JOHNSTON, SENIOR CONSULTANT, SAC CONSULTING

There is a common misconception in Scotland that ‘diversification’ means agritourism.

Whilst agritourism continues to be a hugely successful sector in the rural economy, there are many diversification opportunities landowners could consider. These may include sports and leisure, rural retreats, retail and hospitality, food and drink product development, artistic/creative workshops, cook schools and tasting experiences. Other examples include health and wellbeing activities, farm-based gyms and fitness coaching, alternative crops, wind turbines, micro electricity generation, flower picking and dog fields.

All diversified enterprises, including agritourism, can be financially and personally rewarding bringing new dimensions to a core business.

Diversification has far-reaching impacts on the whole rural economy by enhancing the social and economic sustainability of many rural communities. Diversification provides jobs, attracts domestic and international visitors, increases footfall and consumer spending in retail, hospitality, and tourism businesses, benefits social interactions and engagements, and can inject investment into our mainland and island communities. Crucially, diversification can bring new opportunities for young people to live, work, and raise a family in rural areas, thus reducing depopulation across rural Scotland - particularly within our remote rural communities. It is critical to ensure that we don’t lose our unique culture, heritage, and traditions, which are the foundations of Scotland’s identity.

Diversifying doesn’t need to include consumer-facing activities, like tourism or hospitality. Those who would prefer to avoid the public may find success making bespoke furniture from wood or creating luxury clothing and textiles from wool. Some may choose to utilise their land to a greater effect with the installation of wind turbines, hydro schemes, hosting mobile phone masts, or other utility service infrastructure, which can bring additional income from relatively small acreage. Farmers may choose to diversify by growing alternative crops such as rye for the biofuel industry, or hemp used in textiles, paper, and construction materials which can be a good addition to arable crop rotations, bringing agronomic benefits, and leveraging hemp’s impressive carbon sequestration ability.

Often the most fulfilling enterprises are those which are a natural extension of your lifestyle - capitalising on your own unique skills, interests, and talents. Photography, arts and crafts, music and performing arts, children’s education and activities, training sheepdogs or gundogs, sports, or fitness coaching, can all bring an immense sense of achievement along with an income stream.

‘wellness’ industry. We are seeing increasing demand for heat and cold therapy, plunge pools, outdoor saunas, nature trails, forest bathing, walking therapy, or wellness workshops held in beautiful natural surroundings. Rural businesses are ideally suited to cater for this demand by capitalising on their natural assets.

Diversified businesses are also seeing a shift towards more sustainable operations, creating sustainable sourcing strategies, rainwater harvesting, providing active travel options, installing renewable energy infrastructure, and using recycled, upcycled, or repurposed materials for furniture or building materials.

Rural businesses can access support to upskill their employees in adapting to climate change and reducing business emissions by accessing Carbon Literacy for Rural Industries training. This training can help diversified businesses ensure they are futureproofing operations and supporting the drive towards a netzero future, something that is top of mind for many of today’s customers.

Diversification is an exciting and evolving part of the rural industry to work in. Diversified business owners are, by their very nature, forward-thinking, creative, and ambitious, however, many of them face similar hurdles and barriers on their journey. Whether it’s selfconfidence, family dynamics, succession planning, staying motivated, making decisions, or frankly finding themselves responsible for a whole new business type. These challenges are not insurmountable, but we have found that the most successful diversified businesses are the ones who aren’t afraid to ask for help when they need it.

that I now view Kerry as an integral part of my inner circle. I benefit from the honesty and frankness of our discussions, she helps me see different perspectives, holds me to account in a beneficial and safe way, and challenges me in a way that I welcome. It’s the reassurance and companionship too, running a rural business is a lonely place at times. She adds exponential value to work I’m doing… she is worth her weight in gold.”

- Sarah Heward, The Real Food Café,

Accessing coaching, mentoring or business advice is a proven way for people to begin to overcome their challenges. They have a personal cheerleader in their pocket, someone who knows the industry and the pitfalls that may arise, someone who can support them in decision making, play devil’s advocate when required, or motivate them through a ‘stuck’ mindset. Coaching can alleviate that sense of isolation and risk when undertaking anything new - it doesn’t all rest on your shoulders, you have a teammate.

For more information about how we can help your rural business to navigate through change, get in touch!

Get in touch: calum.johnston@sac.co.uk