Do You Know Your Core Product?
Do you do too much in your business?
I don’t mean do you personally take on too much in the business, but does your business try to offer too many things to too many people? It’s a common theme in small business, and it’s something I see as a business coach every week.
These are businesses that start out, make a success of it, get more customers and make more money as they grow. Then, they start to look around and try new things, offering more and more products and services, instead of concentrating on what they are good at.
Sometimes that happens for no other reason than the business owner getting bored with the same product and wanting to add something new. And there’s nothing wrong with adding to your inventory, so long as you don’t lose sight of what made your business successful in the first place.
What is your cash cow? What is your core product? This product is the one that your business does well, efficiently, is well-known for, and you know that every time you make a sale or complete a job for a customer, you will make money on it. Contrast that with newer products or services which might be sold less often, be harder to deliver, take up more staff time, and you may not always come away with a profit.
Go back to that steady performer and make sure it’s getting the attention in the business it needs to keep generating great results. Then, carefully look at what the costs and benefits are to adding each new product to your business. Decide which ones are worth your time and trouble for the result they will give you.