You’re often faced with a simple choice: keep growing your core or expand into new arenas. It’s a challenge of balance.
By growing your core, you’re building what you’re already successful at. Customers have validated that product or service. It’s likely very profitable. And as you’ve heard me pontificate on before, strategy is inherently about saying “no.”
On the flip side, your core can only get you so far. The ideas behind it might get stale or run their logical lifespan. Cool new opportunities and ideas spring up all the time. Many of those new opportunities are untested and unproven though therefore they’re riskier.
Your job as a leader is to balance between strengthening and growing what you already do well while simultaneously finding new growth opportunities for your business. It’s challenging because you have resource constraints and can only invest so much time, effort, and money into building the core and expanding beyond it. You have to make this tradeoff effectively. This applies to you whether you’re a small business or a monolithic one.
So how can you strike that balance?