Thought of the Day: More is Better, Right?

...Right? 

Depends on question actually. When the question is about the number of products you should have, the answer to the question is nuanced at best. 

The fact of the matter is that a majority of small businesses fail or simply close down within the first three years. There are many reasons for this, like not having enough cash, being in an over-crowded business space, lack of experience in the field, lack of experience in business matters like finance and taxes, spending unwisely on advertising, etc.

Another reason companies fail, and one relevant to the question in this post, is that they carry too much or too little inventory. Too much inventory and your capital can get tied up preventing you from seizing an opportunity that comes by. Too little, and your customers are starved and start looking for other places that they can get what they want.

The problem obviously gets magnified and further complicated when you have more products. No wonder there is an entire segment of businesses that do nothing but manage inventory for other companies.

So, when in comes to the number of products you should have, consider the implications that each new product has on your entire product line before jumping in.

Good Luck!