How to expand your business’ products and services for the better

Learn how to expand your product line and services with our useful guide:

1. Think about customer needs and business trends
2. Stay true to your brand and quality control
3. Get employee input
4. Find a unique selling point
5. Try some pre-launch testing
6. Work out how to handle demand
7. Plan an exit strategy

Creating an effective product line strategy will ensure your small business hits the ground running. 

It’ll help you target the right customers with products and services they actually want. Plus, it could help you diversify, while learning lessons from the Covid-19 pandemic.

But whether you plan to introduce completely new services or simply improve existing products, it’s vital to do your homework first – and stick to what you’re good at. Investing in the wrong products could hit your company’s bottom line and potentially create brand confusion. Over expanding might also throw up new risks. Before you begin, think carefully about the best way to expand your current offering – or how to start a product line from scratch. Our seven helpful tips should get you going…

1. Think about customer needs and business trends

First things first, there needs to be genuine customer demand, whether you plan to introduce new services or improve existing products. 

If loyal customers keep asking for a specific product or service, it’s usually a no-brainer to start offering it. 

On the other hand, it’s always best to gauge demand first if there are any question marks. Put yourself in the shoes of your customers to see if there’s an appetite for change. You might want to take advantage of emerging business trends with a new menu in your restaurant or a big holiday promotion, for example. But without hard evidence, there’s no guarantee it’ll work. 

2. Stay true to your brand and quality control

For any successful entrepreneur, creating a strong reputation takes time and effort. That means the products and services you add should complement your core brand and area of focus, rather than distracting from it. So, when considering how to expand your product line or services, always weigh up the potential brand risks and rewards. 

Keep quality control at the front of your mind too. Expanding your product line at the expense of quality is unlikely to go down well with existing customers and investors.

3. Get employee input

Along with your brand and customers, think about the role your staff could play when deciding how to expand your product line. Your employees interact with your customers a lot – maybe even more than you do. That means it’s worth asking for their input on a suggested product or service. You could get exciting new ideas from them, plus valuable insights into customer buying behavior.

4. Find a unique selling point

Jumping on bandwagons and trying to mimic competitors’ products is unlikely to get you very far. You’ll be entering a crowded field, while you may be viewed as a follower rather than a market leader.

Try to come up with some unique product features and selling points that set you apart from industry rivals. But don’t go too wild or wacky – you’ll still need to meet genuine customer needs, after all.

5. Try some pre-launch testing

Creating a mock-up of your product or a test website is a quick way of gauging customer engagement. Low levels of interest might encourage you to refine the product or even ditch it completely. It’ll ultimately reduce your risk exposure.

It’s also best to research product pricing and payments far in advance. If you’re buying from a vendor, they’ll usually tell you the suggested retail price. But if it’s a product you’re creating in-house, you’ll need to calculate the cost of developing, packaging and marketing it, and how much customers would be willing to pay. That way, you’ll know if the potential return on investment makes financial sense.

6. Work out how to handle demand

Any product line strategy should also focus on the bigger picture, considering what might happen after you go live. If your new product or service takes off in a big way, how will you keep up with customer demand? If it’s a product, will vendors and manufacturers be capable of meeting your orders in a timely manner? If it’s a service, could your employees handle more hours, or will you need to hire additional staff?

7. Plan an exit strategy

No business owner wants to think about whether their new product or service could be a flop. Yet planning a potential exit strategy if things go awry may save you time and money in the long term. After all, with many other new products launching in the food and beverage market, there’s lots of competition.

If your product line strategy proves a failure despite all your research and financial investment, always be prepared to walk away.

You can map out potential exit points in terms of time (for example, giving it three months, six months or a year), money invested, or inventory (e.g. the number of units sold).

Start building your product line strategy today

It’s all too easy to lose sight of the bigger picture in the hurry to expand your services and improve existing products. Yet a lack of planning could leave you counting the costs or lumbered with inventory you can’t shift. 

Taking the time to create a product line strategy will cut risks and ensure your expansion plans are genuinely viable. Whether gathering customer feedback, launching test products or doing some simple sums, there are plenty of ways you can prepare for potential success – and failure.

Reach new customers and build your brand’s reputation by becoming a Groupon Merchant.