When to Expand Your Product Portfolio?
Product Expansion Strategy: Timing, Risks, and Best Practices
Every growing business faces a fundamental question: When is the right time to launch new products or services? Too soon, and you risk spreading your resources too thin and losing focus. Too late, and you risk stagnation—or failing without even trying.
When Is the Right Time to Expand?
Your core product must be solid. Before expanding, ensure your main product is strong and competitive. Are you retaining customers? Is your product growing sustainably?
Don’t rely on essential resources. Fund expansion through profits (or leverage) and avoid using critical talent. If you do, assess how reallocating these resources will impact your organization.
Differentiate your product. Before launching something new, ask yourself: Is the market saturated? Can I stand out? Is there a natural synergy with my core product? Is there enough demand to justify this investment?
Expansion seems like the natural path to growth, but if the timing isn't right, it can backfire. First, dominate your niche, strengthen your competitive edge, and then expand strategically and decisively.