If your business is a one-trick pony, it will die… unless you do something about it.
What is a “one-trick pony” business?
“One-trick pony” is a business that is dependent on the success of one single product or service.
How do you know your business is a one-trick pony?
If you have only one product or service, your business is a one-trick pony. If most of your sales are coming from one single product or service, your business is likely a one-trick pony.
The ultimate test is this: would your business survive if you removed your biggest source of revenue? If your answer is “no”, your business is a one-trick pony.
Why do one-trick ponies die?
Businesses that depend on a single product or service die because products and services have limited life spans. No single product or service can live indefinitely. They all follow the inevitable product life cycle and ultimately die. It’s not a question of what, only a question of when.
What can be done about it?
Product lifes can be extended using multiple marketing strategies, but this can not completely avoid the ultimate demise, only postpone it. Once the underlying technology supporting your product or service is replaced by a superior one, know that the end is near.
The only way to guarantee your business’s survival, is to stop being a one-trick pony. And, the only way to stop being a one-trick pony is to expand your product/service range while, at the same time, ensuring that they are not all based on the same underlying foundation.
When to start adding new products/services?
If having multiple products/services is not already part of your initial sales funnel, you should consider adding new products or services as soon as you reasonably master the art of selling and start getting customers. The sooner this happens, the better.
A very important thing to understand is that these not necessarily need to be your own products or services. You can just as well promote complementary products sold by other (non-competing) businesses in exchange for an affiliate commission (referral fee).
Expanding your product/service range and/or promoting other businesses’ products will not only increase your business’s chances of survival by becoming less dependent on sales of one core product, but also improve your bottom line, increase your customers’ lifetime value and strengthen your relationship with them.
What’s your story?
Is your business a one-trick pony? If yes, what are you going to do about it? If no, I would love to hear your story and find out more about what impact adding new products/services had on your business.