top of page

Three screening questions - expanding your product or service offering

Updated: Jun 29, 2021

A great way to grow a business is to add an additional product/service. As business owners ideas pop in our heads all the time of what else we can provide our clients or customers. However, a poor decision will lead to wasted time, lost financial investment and potentially risk your current business. Here are three questions to ask yourself to help sort through your ideas:

1) Why is my business ideally suited to provide this product/service?

You will have the best chance of success if the new product/service can be sold to your current target customer base. In addition, if the product/service can be dropped into your current business model with little investment you it will be easier and cheaper to execute.

Note - Concepts outside of your current customer base or business model may be quite fruitful, but they will take a lot more research, time to execute and potentially financial investment. Understanding that up front is important when weighing your options.

2) Who is my competition?

Adding a product/service may expand your competitor list. Evaluate your competition and understand how successful they are at providing the product/service. Consider what you would do differently that would entice a client to choose your business over the competition.

3) How much money will I make?

A quick financial analysis will tell you if the idea is worth investigating. You also need to consider if any of your current business will be cannibalized by the new product/service and include that loss in the analysis.

The goal is to spend time only on the best ideas. If your new product/service passes these three questions then you can feel more comfortable putting in more time into researching the concept in depth and potentially creating the new offering. Best of luck!

21 views0 comments

Recent Posts

See All
bottom of page