Rookie entrepreneurs go wide.
Seasoned entrepreneurs go deep.
What do I mean by going wide and deep?
So rookie entrepreneurs try diversification too early.
They find success with one product or offer and think they can replicate their results with another offer.
This is far from true and even if they can replicate results, their attention is divided across products they launch.
So each product or service they promote needs its marketing and resources. Doable but not efficient.
It takes a hit on both margins and attention.
Such entrepreneurs want to replicate what Richard Branson did with Virgin or what large FMCG brands do with their portfolio of products.
They forget that each brand has its CEO and profit and loss account. This is not possible for a small brand.
Contrary to this seasoned entrepreneur, go deep.
They may have to go wide first to find one product that the market actually wants.
But once they have done it, they consistently sell it to one customer avatar, again and again, using one proven channel.
This strategy is good for building a million-dollar business from scratch. One can even build an 8-figure business using this same strategy while adding high-value deliverables to the same product and selling to a bigger customer pool.
Which of these approaches are you using in your business?