Healthy Business Growth Comes from Depth, Not Just Disruption — Here’s Why

As the founder of multiple startups, according to the author he has learned that strategic expansion isn’t necessarily about overhauling your business or pulling yet another rabbit out of a hat. It’s about uncovering every possible way that the products and services you’ve already built can deliver more value to your partners or existing customers.

Building an initial customer base is labor- and cash-intensive. Why invest more energy in this pursuit when your existing relationships have yet to be optimized? Deepening existing relationships should be paramount.

But how do you determine what additional offerings your customers truly need? How do you know which products and services will allow you to deepen those relationships and drive growth? Here are three steps to reveal your next new offering.

Start by (actually) listening.  The development of any new product or service begins with careful listening and genuine curiosity. It is about market research that springs from customer obsession — not just scouring Google Trends for ideas.  According to the author when his business development team heads out to see partners, he always say: “Don’t ask what they need; ask what their problem is.” It’s a crucial distinction. The client is an expert in their own situation. But we should be the experts about the services and products that can solve their problems.

Take stock of what you have.  Discovering the problem is only the first step. Next, you have to evaluate whether you should offer a solution. But remember, this isn’t about doing a 180 or creating a whole new vertical. Instead, ask yourself: Is this additive to our existing business, or just a shiny distraction?  It’s important to model how long it will take to realize your ROI. Building an app, for example, may feel like an organic extension of your core business, but time and resources are lost in rounds of complicated testing before any revenue can be generated. So, even if it fits in every other way, a capital-intensive offering with delayed revenue might not be worth it.  That said, if the bandwidth and expertise are already in place, and the new product or service is an efficient use of time and resources, then you’ve potentially just struck gold. The key is looking for those baked-in connections: the light lift and the smart reimagining of existing products and services so that they can easily serve additional use.

Decide whether to greenlight.  You’ve heard what’s really needed, and you’ve taken stock to confirm that you have the skills/equipment/team that can fulfill that need. Then, it boils down to deciding whether this is actually a great opportunity or a distraction.  After a basic cost analysis (will it generate revenue?), a more complicated question is to ask: What is the risk to your current customer relationships when you expand your list of offerings? If your new product or service isn’t executed well, the trust you’ve built could be damaged.  Brand dilution is a further risk. Any brand can grow weaker when new products or services don’t bolster and complement its original offering.

When done right, the delivery of new products and services should feel like a win-win. The client or partner has their problem solved. And you’ve unlocked a brand-new revenue stream. Most importantly, your existing relationships are deepened, and the ties that bind you together grow stronger.

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