Good, helpful stuff as always. Anything that sucks resources from the core of your business needs to be eliminated. Here’s the key quote:
“But here’s the thing. Sortfolio may be profitable, but it’s far less profitable than our other products. As a result, it gets far less of our attention. And given the way things are going, it’ll get even less TLC in the future. Sortfolio is standing still. And anything that’s standing still is atrophying. That’s not good for us, and it’s not good for users of Sortfolio, either. Sortfolio needs an entrepreneur who wants to invest time and energy into it—something we just cannot do. We’re a small company with a small team, and we have to use our resources wisely.”
Great post by Seth Godin on the dangers of extending your company into new product lines. You may be better off focusing on your current product and just really wowing people. I’m a big fan of this approach myself.
Great post from Greg Gretsch about the enormous importance of focus. Here’s a great paragraph:
One of the biggest advantages startups have over larger, more established companies, is that their inherent lack of resources forces them to do fewer things – to focus. Focus is important for all companies, but while a lack of focus in an established company can slow growth and lower returns, inability to focus in a small company will kill it. I’ve seen more companies die from indigestion than starvation.