By Phil Rea. A: First, ask yourself why you want to take on a new product or service. Then, consider the following:
1. Will your current products and services allow you to fulfill your personal and financial goals?
2. Are there areas in your company that need improvement?
3. Will new products or services enhance existing lines or detract from that effort?
Diversity isn't all it's cracked up to be. Highly focused companies appear to make the most money and have the least headaches. I recently talked to a friend who did about $500,000 in replacement windows in 1992. This year he'll do $6 million. In the next 12 months he plans to implement his system in two additional locations. Will he be successful? Who knows. But in my opinion this is a much healthier way to grow than adding product lines he's not known for. Implementing his systems in new locations offers low liability. Expanding your services can be profitable. Just be certain you know your motives. --Phil Rea is president of Phil Rea and Associates, a firm offering sales consulting, motivational speaking, and a monthly newsletter. (866) 441-7445; firstname.lastname@example.org.