Let me tell you a story of recent client that I worked with, let’s call her Laura.
When Laura reached out to me, she was exhausted trying to manage her growing business, add new products and yet her sales still were not at the place that she needed them to be.
I asked her some basic questions and found out that her core products were really skincare products in the natural/vegan market.
Since starting her business one year ago she has expanded her product offering to include the following:
- Natural haircare – sku’s included: conditioner, hair care, shampoo, treatments, etc.
- Natural make up line – everything from foundation, lip products, nail polish, eye make up, etc. (great stuff)
- Natural cosmetic brushes and bags (all very expensive)
- Natural body care lotions, scrubs, oils, etc.
All great products, but she wasn’t making any money. And without consistent sales and a strong client base she was stretched too thin.
Let me show you how we turned it around and how she got her business re-focused.
1. Scaled back her offerings: I know it’s counter-intuitive but we temporarily put a hold on the products that were not selling and scheduled them for a “re-launch” later in the year.
2. Went back to basics: We featured and promoted her core products and built more sustainable business around her core product offerings.
3. Kept her cost down: We needed to streamline her cost, so we moved some manufacturing, switched packaging to be able to buy in larger quantities and changed labeling to eliminate an extra label cost and extra application cost.
If you find yourself in a similar situation, spread too thin, not making the sales you want to or not sure of your next steps then remember these few key points:
1. Stay within your category. Don’t chase new opportunities and products that are outside of what you are known for. It makes no sense to jump categories until you dominate one category.
2. Dominate your current category. Think “inch wide and mile deep”.
3. Keep cost down. Look for ways to keep cost down without sacrificing quality.
It’s usually not the product that’s the issue. It’s the lack of focus that’s the issue for most new brand owners or owners looking to grow.
Was this helpful? I’d love to hear your thoughts. If you have more questions, you can always book a strategy call.