Recently I was talking to an entrepreneur that had just started getting traction on a new product. After digging in, it was clear they still had a prior product they were selling and supporting, even though it only had a handful of customers. My advice: drop the second product.
Here are a few reasons why a startup should only have one product:
- Talent – The best people work on the most important product. Second products inevitably languish without the right talent.
- Limited Resources – Startups are inherently resource constrained. If one product has limited resources then two products are going to have even more limited resources.
- Go-To-Market – Customer acquisition is the biggest challenge for startups. Dividing go-to-market across two products makes it even more challenging.
- Speed – Startups beat large companies due to speed. Spread the efforts over multiple products and the speed is impacted. Stay fast and nimble.
Drop the second product. Entrepreneurs would do well to focus on one product and do it well.
What else? What are some more thoughts on the idea that startups should only have one product?