As a small business owner, it can be difficult to tell when you’ve found the perfect balance when it comes to the products and services you offer. If you offer too wide a selection of items, you run the risk of diluting your market. If your focus is too narrow, you can miss out on other revenue opportunities. How do you know when you should build a niche or diversify your products?
The first thing you need to ask yourself is how big your existing market is. A niche market can keep sales going, but only if there are enough people out there to support it. You also need to know if your business can support a wide range of products or services. The more you offer, the more you have to manage. If your company is very small, managing a wider inventory or range of services may risk spreading yourself very thin. You also have to know if your customers would buy additional products. You should know your customers very well and know if there are any other complementary products you could be offering that they would be interested in. Finally, you need to know if you can continue to deliver great service if you expand. Great service should come first!
Read the full article here: Should You Diversify Your Products or Own a Niche?