Major chain stores can seem monolithic and consistent to a fault. In truth, the scope and size of the largest retail chains allow them to experiment a lot without tampering too much with customer expectations. They can incorporate new products in a “test market” without investing too much money in something that does not have an appeal to consumers.
For smaller retail stores, where funding for business is much lower, adjusting strategies and incorporating new products and services can be more difficult. Investing in a product or service can take a small store off course and suck up more than its value in small business funding.
Here are a few ways to consider whether a new product or service is worthwhile to your business:
- Have You Maxed Out Profit Potential from Current Products? If there is more money to be made out of your current products and services, you should establish avenues to get it before taking on new products.
- Can You Add Something New Without Losing Focus? Pulling focus from your established business model can ruin it and put too much focus on something new.
- Has This Product Worked Elsewhere? We all want to innovate, but knowing a product or service (or something similar) has already worked in similar markets is a safe way to invest your funding for business.