tech-company, business-modelMy startup has products that are niche with little competition. I sell my stuff at a high margin but it is unlikely my business will ever be very big (20m$+). Currently we are around 3-4m$ and very profitable.
However the skill set and the engineering talent in the company is great and we can pivot to other domains with larger markets with more competition.
I am struggling with what should I do next. Stick to my domain and do product extension or pivot and attack larger markets. Anything in a new domain will take 12-18 months to develop and it is not a sure bet.
I am very worried of loosing focus if I pivot. But I am also very worried that I won’t have a sizable exit ever if I stick to my domain.
What factors should I consider and how shall I make this decision ?
First question in expanding is often, “how do I serve more people?”
That would usually be with an existing product because it is far less expensive in most cases to increase production than start a new line. With increased production you can keep your wealth of marketing knowledge and assets and apply it, rather than having to learn how to market something new.
Starting a new product can also factor in how strong your brand is. If your brand is already widely ‘known, liked and trusted” then you can sell on the back of that, transfering that trust to a new product. If the brand is not yet strong enough then you’re giving yourself a hill to climb.
Serving more people with a current product could be by giving it a different use, not yet thought of. This changes marketing messages, but maintains production process. Or it could be moving into new territories and translating your sales process.
Difficult to know without any knowledge of your product.
The thing to be sure of though, if you’re anything like me, is to be sure you’re not simply looking to pivot because you’re bored. I’m not a ‘finisher’ I get excited by new ideas so have to keep myself in check and keep my eye on the ball.
If it turns out that a new product is needed to grow then probably wise to consider it a separate entity in your head at first and go back to startup basics. Whilst ensuring the main product is maintained
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