Photo: Courtesy of Cathryn Lavery
My first year in business was a much bigger success than I’d expected.
My first real product, the Self Journal, launched on Kickstarter in August 2015. I’d set a funding target of $15,000, and by the end of the campaign, I’d raised $322,695 from a total of 6,531 backers.
It was a huge win that, not only validated the concept of a 13-week productivity and goal-setting journal but also launched BestSelf Co. as a business.
But it didn’t take long for this big win to morph into a problem.
If you’ve ever watched Shark Tank, you’ll know that the Sharks are reluctant to invest in a single product.
There’s a simple reason for this reluctance: one product means you have a product, NOT a business.
Even if you have a winning product, your business is vulnerable because all your eggs are in the same basket. You have a single point of failure, which leaves you vulnerable and wide open.
If something happens to that one product, you’re out of business. And so much can go wrong—2020 has been proof of that.
First up, you’ll have competitors snapping at your heels.
Back in 2015, the Self Journal was the only 13-week goal setting on the market. As the first-of-its-kind planning and productivity tool, it gained traction quickly, especially because it was backed by science and success psychology. Fast forward five years and the market is saturated with 13-week journals.
Add to that, potential supply-chain problems, inventory going out of stock, as well as alternative goal-setting solutions coming onto the market, and your steady stream of sales can soon hit a downward curve.
A single product offering also means you have to find new customers again and again. Finding customers is expensive, especially as the cost of paid ads continues to rise.
With the Self Journal accounting for 99.9% of our sales, I knew I had to diversify.
Plus, the benefits of diversifying are so many. With a suite of products, you:
Spread your risk
Unlock up-sell and cross-sell opportunities to increase your average order value and your customer lifetime value
Widen your potential market
“If something happens to that one product, you’re out of business. And so much can go wrong—2020 has been proof of that.”
—Cathryn Lavery, Co-Founder & CEO of BestSelf Co.
I remember Tony Robbins asking two questions: “What business are you in?,” and, “What business do you need to be in?”
BestSelf Co. used to be a product-first company that sold goal-setting journals.
We needed to become a problem-first company that understood our customers’ challenges so well, we could create products that resolved them. We began to interview our customers in our community for information to really understand their needs.
As we transitioned to a problem-first approach, we unlocked a new creative wave in the business. Initially, we stuck with our productivity and goal-setting core.
For example, we recognized some customers felt overwhelmed by the structure of the Self Journal. They wanted to be more productive and effective in their work and their life, but they didn’t want the day-to-day detail of the Self Journal.
We created the Weekly Action Pad in response, which remains one of our most popular products to date.
Not every product innovation was a winner. There was a time when we invested in a merchandise range. Tees and hoodies didn’t sell as we expected, but we learned from that experience and used the lessons to dive deeper into the core of who we are as a business.
Eventually, we began to think more laterally about the problems we wanted to solve.
We realized lots of our customers enjoyed journaling because, through the process of self-discovery, they got clearer on the goals they wanted to set and past the roadblocks that were in their way.
Market research revealed that writer’s block was a big problem for journalers, so we created a deck of prompt cards to spark creative thinking.
And this product launched a whole new line of prompt decks.
It’s tempting to stick to what you know, especially when your product is doing so well, but you’ll never regret diversifying before you need to. You can’t know how long it will take to find another winner. Sometimes the things you think will fly become the embarrassing flops [we’ve had our share of those too!].
The secret is to keep coming back to the core problems you’re trying to solve.
Solve a real problem, and you can’t go wrong.
“The secret is to keep coming back to the core problems you’re trying to solve.”
—Cathryn Lavery, Co-Founder & CEO of BestSelf Co.
About the Author: Cathryn Lavery is the co-founder and CEO of BestSelf Co., an organization dedicated to helping people become their best selves, fulfill their potential, and lead happier lives. As an Irish immigrant with zero business experience, no personal network, and little resources, Cathryn transformed herself into a serial entrepreneur creating multiple brands and even helping others bring their ideas to life. She is passionate about showing others how to make the change and have the tools to achieve their goals.
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