SMALL and medium-sized companies in Worcestershire and other counties across the West Midlands are set to benefit from up to £4m of new funding to help them diversify.

The Diversification Prog-ramme 2 from Advantage West Midlands is delivered by the Business Link network and aims to help local companies raise their competitiveness and productivity through developing new products, processes or exploiting new markets.

Barry Jones, diversification manager at Business Link West Mercia, says that many companies are missing out on this valuable cash boost.

"Any company serious about progress will be looking to diversify in some form or another," he said. "Only companies that constantly seek to develop and seize new opportunities will survive and prosper."

To qualify for a diversification grant, companies need to be SMEs with 249 employees or less and an annual turnover of up to 50 million euros. The programme has helped more than 1,000 firms.

Any local company interested in the programme should contact Barry Jones at Business Link West Mercia on 0800 104010.

plastic injection moulding company and milk shake company.

Mr Jones added: "What all these companies had in common was a desire to grow. Diversification can be a challenging strategy for many, but with the commitment of senior management coupled with advice and support it represents an enormously beneficial opportunity for the majority."

The Diversification Programme begins with a benchmarking exercise to compare a company's performance within its sector. A strategic action plan is then developed to identify routes for potential diversification. Funding for up to five day's Business Advisor support is provided with further consultancy support funded at 50 per cent to help implement the diversification project. A second benchmarking exercise is conducted at an appropriate stage during the process.

"Understanding the need to change is one thing, the big question is how do you do it," said Mr Jones.

"Our experienced diversification advisers can help companies develop a vision for the future, drive through the change, develop new ideas and find different ways to make the most out of people skills. It really is all about improving competitiveness and 'future proofing' the business."