If you feel that your business isn’t achieving all it could, one new business venture you might look into is adding a new product or line to your business. Especially for companies that focus on a limited number of products or services already, expanding your scope could be just what you need to breathe new life into your business and see a growth in your market share and customer base.
However, this isn’t something that should be taken on lightly. Many businesses that set out to add a new product line end up biting off a lot more than they can chew. To keep this from happening to your company, here are three tips to follow when adding a new product line to your business.
Understand Why A New Product Line Can Fail
Knowing what other businesses have done that have proven to be less than successful with regards to adding a new product line can help you avoid making the same mistakes. According to Marsha Lindsay, a contributor to FastCompany.com, launching a new product line can fail for many reasons. Some of these reasons include not filling a real need, not having enough customer demand, mismanaged marketing, unrealistic expectations and more. Simply knowing the reasons that others have failed to bring their new product line into being can help you steer clear of these issues and give your company a better chance of having your additions contribute to your business rather than take away from it.
Communicate Why You’re Adding What
In the eyes of consumers, it’s often a perk to know why you’re deciding to add something to your line of products other than to simply have a more successful business. For this reason, it’s vital that you communicate your reasoning for launching a new product or service in such a way that your customers will want to stand behind you and experience this new thing you have to offer.
To do this effectively, Elisha Hartwig, a contributor to Mashable, suggests for businesses to be very transparent about where their new products are coming from, why they’re being added to your line, and why these new products are being produced and priced the way they are. For example, if you’re adding a new shoe to your footwear line, you should know the answers to the above questions in order to accurately convey this messaging to consumers who like to be in the know. Not only will this give you a better brand image, but it will also help your customers feel more confident in their decision to purchase from you.
Plan the Process From Start to Finish
If you fail to plan how your new product or product line will work with your current business, you’re almost guaranteed to run into some major issues. For this reason, planning the process from start to finish will be a major benefit for your company. When putting together your plan, John Rampton, a contributor to Inc.com, recommends for businesses to detail how the new product will work with your current products, how you will market and advertise your new line, and how you plan to implement this into your already fast moving business. By doing these three things, you should have a decent plan for a successful new line of products.
Launching a new product or line of products could be the best decision you make for your business. Use the tips mentioned above to ensure that you have all your bases covered when you endeavor to take this new step to additional business success.