Most startups begin small, intending to expand after learning some key lessons, such as avoiding poor product launches that could sink the company or making poor judgments that could do the same. Most businesses work toward this goal by testing a few products at a time, but not too many. The point is that these products should have a common denominator. It can be the same target market or marketing effort!

The Pros – There is focus and a great niche, and you can develop your product quickly rather than splitting your efforts. There is a high conversion rate as well!

📌 Did you know?
In Professor Sheena Lyengar's famous jam study, when 24 types of jam were provided, just 3% of those who tasted the samples bought the jam. But when given only six types of jam, 30% purchased at least one jar of jam.

The Cons – You've got a lot of pressure on your shoulders. When you just have one product to market, you rely entirely on it. There are fewer repeat customers and fewer marketing opportunities too.

Honestbee Case Study 🐝 Takeaway
Failure Point #1: Lack of Focus

One of the reasons Honestbee failed is that its business model lacks direction. The company was involved in too many initiatives, going into grocery delivery, food delivery, laundry delivery, parcel delivery, ticketing, retail, and food & beverage. Honestbee also seemed unsure about allocating their resources and capital, resulting from an unclear direction of the company.

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Of course, as a startup, your goal is to be ahead of your competitors. They'll either beat you up, or you're the one who will beat them. It's natural for businesses to be in constant competition with each other. Keeping track of your competitors' moves can help formulate ideas and plan to grow your business. It will also keep you updated on the trends in the market.

However, your competitor may not always need to be a competition. You may establish partnerships through which both parties gain. You can also make each other's business expand another. For instance, merging your business also means connecting your resources to accommodate what you lack. A pizzeria or restaurant may also partner with a courier business to deliver. It doesn't just lessen competition but decreases the cost as well.

• Begin with a win-win mentality built on thinking a few steps ahead of time.
• Have a clear vision for the company, its network of relationships, and how they all work together to help it expand.
• Be clear about what you can provide and what your partners can provide.

As a new startup business, everything is trial-and-error. First, you need to assess if your business growth strategies are effective. You can hire experts to evaluate each aspect of your business from product cost, processing, sales volume, and marketing. But in the end, you're the chief responsible for carrying out market research and management plans. When you have a clear view of your business's financial and marketing data, you can now decide whether you should modify, retain, or completely change your strategies.