Thinking of expanding your product line? An idea that makes perfect sense to you may not resonate with your customers. Think before you act.
If your business is established and doing well, chances are you’ve thought of branching out, either in a field related to your current product or service, or in a totally unrelated area you think you might have a knack for.
In the small-business world, branching out can act as a double-edged sword. The time you’ve spent establishing your brand can be swiftly negated if you suddenly introduce something totally unrelated to your current line. This will confuse your customers and dilute your brand.
Customers can be a delicate bunch, and must often be spoon-fed certain information.
Let’s say you own a Thai restaurant, and you decide to introduce Chinese and Indian food. This would make sense to you as a business owner, as it is more or less a matter of buying new spices and gaining new customers. It could backfire, however; people who have gotten used to you as a Thai location could be put off by a restaurant that offers so many disparate choices. In the mindset of a discerning patron, this could mean that you are spreading yourself too thin—and that could be a major turnoff.
“Customers can be a delicate bunch, and must often be spoon-fed certain information.
Always remember that the initial product that helped you launch your business needs to remain at the forefront of your offerings. Once it starts to take a backseat to your “new” endeavors, you should start getting worried.
This does not mean that you should never introduce anything new and unrelated to your products. It just means that you need to point out how the new product actually complements your current line.
Going back to the example above, it would be wise to incorporate the new product into the existing line seamlessly, by introducing an “Asian Fusion” cuisine: one that combines dishes from countries of the same region. In this way, you can avoid alienating your existing customers while gaining new ones.
You could also establish a new business line to complement the current one, even though they are totally unrelated.
“You could also establish a new business line to complement the current one, even though they are totally unrelated.
A good example of this strategy can be found in the furniture store IKEA. The main line of business is complemented by the in-store restaurant that offers buyers a break from shopping there—a potentially tiring experience, given the store’s expansive sections.
These ideas can all be adapted to suit the exact nature of your business, so be sure to review your entire list of options before sailing into uncharted waters.
