Product Management
Building the Next Big Thing: A Framework for Your Second Product
November 19, 2024
Startups often need to introduce a second product sooner than expected to sustain growth. Because you’ve tightly defined your market and ideal customer, you can quickly saturate that market.
The early adopters you mostly sold to begin to dry up. You targeted a tiny niche. As a startup, you needed to focus on the few people who needed something badly enough to take a chance on an unproven company. But now, you’ve seen success, defined a market, and competitors are starting to appear. They’re putting pressure on your first product.
Growth slows unexpectedly. There isn’t a new product on the horizon. This is a stall that can kill a company.
A second product is the cure. But when is the right time to add one? And what should it be? There’s a framework I like to use to pick when to launch that product and identify the right second product.
Timing
There’s no perfect formula, but generally, it should be around the time you’ve solved the initial market for your first product. You have product-market fit, you know who the buyers are, how they buy, and why they choose you. Your primary constraint is how fast you can...