A well-diversified product portfolio can help businesses weather market fluctuations, attract new customers, and unlock fresh revenue streams. However, diversification requires careful strategy—expanding haphazardly can dilute brand identity or stretch resources too thin. The most successful companies diversify with intention, ensuring each new offering aligns with their strengths and market opportunities.
Michael Shvartsman, an investor from Miami with experience scaling product lines across industries, advises: “Diversification shouldn’t mean straying from what makes your business unique. The best expansions feel like natural extensions rather than forced departures.”
Here are five strategic ways to broaden your product offerings while maintaining focus:
1. Solve Adjacent Problems for Existing Customers
Your current customers already trust your brand—why not address their other pain points? Analyze the broader journey of your audience and identify complementary needs your business could fulfill.
Michael Shvartsman notes: “A company selling kitchen knives might expand into knife sharpeners or cutting boards. These additions feel logical because they solve related problems for the same buyers.”
Example:
- A fitness app adding nutrition tracking features
- A laptop bag brand launching tech organizers
2. Repurpose Existing Capabilities for New Markets
Your business likely has skills, technology, or infrastructure that could serve different industries or demographics. Diversifying this way leverages existing strengths rather than starting from scratch.
“I’ve seen manufacturers pivot production lines to create entirely new product categories,” Michael Shvartsman shares. “A fabric supplier making medical masks during shortages demonstrated how core capabilities can flex.”
Example:
- A commercial cleaning company developing home cleaning kits
- A B2B software firm creating a consumer version
3. Introduce Tiered Offerings at Different Price Points
Not all customers have the same budget or needs. Creating good-better-best versions of your product—or simplified/premium variants—allows you to serve broader audiences without reinventing your core.
Example:
- A skincare brand adding a budget-friendly line
- A SaaS company offering free, pro, and enterprise plans
4. Bundle Products into Solutions
Combining standalone items into curated packages can create new value while moving more inventory. Effective bundles solve specific problems better than individual products could.
“The best bundles feel intuitive,” says Michael Shvartsman. “Customers should immediately understand why these items belong together—like a grilling kit with tools, spices, and recipe cards.”
Example:
- A camera company selling starter kits with accessories
- A pet brand offering adoption welcome boxes
5. Collaborate with Complementary Brands
Partnerships allow you to expand offerings without developing everything internally. The right collaborations bring together distinct strengths that benefit both companies and customers.
Michael Shvartsman explains: “Strategic partnerships let you test new categories with lower risk. A sportswear brand teaming with a hydration company to create co-branded fitness bundles is smarter than either trying to build the other’s expertise alone.”
Example:
- A coffee brand partnering with a bakery for gift sets
- A smartphone manufacturer collaborating with a camera company
Successful expansion requires balancing innovation with focus. Michael Shvartsman’s final advice: “Every new product should answer two questions: Does this align with what we’re known for? And does it serve customers better than they’re currently being served?”
Diversification works best when it feels like a natural evolution rather than a departure. By expanding thoughtfully—leveraging existing strengths, understanding customer needs, and moving strategically into adjacent spaces—businesses can build resilient portfolios without losing their core identity. The companies that diversify well don’t just add products. They deepen relationships and solve broader problems for their audiences. That approach doesn’t just grow revenue—it builds lasting relevance.