Your business is growing and customers love your product. Do you change or sell as many products as you can or do you start to create new products? All products have a life cycle, larger firms start to create new products during the initial part of the life cycle of the older products while sales are still climbing. Why do they look to change a good thing? Let me answer that another way, how long does it take to make a new product, a month, 6 months, a year or longer? What happens when you have reached peak sales of a product and now you start to think about developing a new product? If it takes a year or more to develop and market then your revenue will be dropping until the new product is introduced. You now have to pay for the development as your profits are declining. Many people try to cut back on development when times get tough.
If you developed the new product while the older product was still growing in sales, if you are lucky, you will introduce the product near the peak of the life cycle. As sales are about to start to decline, you introduce the new product. That is ideal if you can time the introduction of products this perfectly. If you have reached the end of the life cycle of a product, particularly if there is technology involved in your product, customers will be continually waiting for new products and will expect you to have innovation. If you fail to innovate, the customers may migrate to the new suppliers who copied your product and improved it .
You always need to be ahead of the competition. If you wait until the sales of your products starts to decline, it means that the customers are going to your competitors. You now have to win them back with new products. It is much easier to keep selling to old customers then to always be looking for a new customer or trying to get your old customers back.