Entrepreneurs are known for their innovative and sometimes risky business ideas, but not all of them turn out to be successful. In fact, the most successful growth opportunities often come from subtle and strategic moves, rather than flashy new products or services that nobody asked for.
As a serial entrepreneur, I have learned that expanding a business is not always about completely overhauling it or constantly coming up with new ideas. Sometimes, the key to growth lies in finding ways to deliver more value to existing customers or partners with the products and services you already have.
But how do you know what your customers truly need? How do you identify which offerings will deepen your relationships and drive growth? Here are three steps to uncover your next new offering.
1. Listen and Be Curious
The development of any new product or service starts with listening to your customers and being genuinely curious about their needs. This means conducting market research that stems from customer obsession, rather than just relying on Google Trends for ideas.
When my business development team meets with partners, I always tell them to ask about their problems, not just what they need. Your customers are the experts in their own situations, but you should be the expert in your products and services that can solve their problems.
For example, my current business is a consumer finance company that partners with clinics to help their patients secure loans. But through conversations with clinic owners, we discovered that they also struggle with financing for expensive medical equipment. This was a market niche we never would have known about if we hadn’t taken the time to have open-ended conversations with our partners.
Research has shown that business students are taught how to present, but not how to listen. By truly paying attention to what your customers and partners are saying, you may find that the solutions you have in mind are not what they actually need. Or, you may uncover opportunities to diversify your products and services and increase your revenue streams.
2.Evaluate Your Offerings
Once you have identified a problem, the next step is to determine whether you should offer a solution. But this doesn’t mean completely changing your business model or creating a whole new product line. Instead, ask yourself if the new offering complements your existing business and if it is financially feasible.
In our case, we already had the basic knowledge, products, and staff to provide financing for clinics. We didn’t have to make major changes to our business; we simply retooled our existing financing mechanisms. It’s important to consider the time and resources it will take to see a return on investment. For example, creating a new app may seem like a natural extension of your business, but it may require a significant amount of time and resources for testing before it generates any revenue.
It’s important to look for opportunities that are already connected to your existing products and services, and won’t require a lot of extra effort or resources. You’ve listened to your customers and identified their needs, and now you need to make sure you have the skills, equipment, and team to fulfill them.
3.Consider the Risks
Before launching a new product or service, it’s important to assess the potential risks to your current customer relationships. If the new offering is not executed well, it could damage the trust you have built with your customers.
Brand dilution is also a concern. When a company offers too many similar products or deviates from its original brand message, it can weaken the brand and confuse customers. Before moving forward, ask yourself if the new offering will lead to more growth and help you become the best version of your business.
The Real Return
When done right, launching a new product or service should benefit both you and your customers. They get their problem solved, and you gain a new revenue stream. Most importantly, your existing relationships are strengthened, and your business grows.
The key is to focus on delivering true value to your customers, rather than just trying to sell them something. By listening to their needs and finding ways to help them, you can uncover new opportunities to grow and succeed.
