When we talk about the "Goldilocks Syndrome," we're referring of course to the familiar fairy tale in which the little girl Goldilocks breaks into the home of the three bears and decides that one bowl of porridge is too hot, another too cold and the final one just right.

This same burden often faces startup service firms. They focus either too narrowly on product offerings or, conversely, too broadly, trying to be all things to all people. Yet, finding the mix and amount that is “just right” is the challenge.

It's completely understandable why companies, especially startups, suffer from this syndrome. When you're new, you need revenue. And you're willing to get it from almost any source. That's why it's difficult to turn down clients that don’t fit your business model. But, expanding your services too much may dilute your brand and lead to brand schizophrenia

When you're first starting out, before you put effort into attracting customers, establish your value proposition. Ask the first question every business must be able to answer: “Why should a potential client buy my product or services rather than those of my competitors?”

Your answer will be what differentiates your offerings and determines your value proposition. You need to be able to explain your value proposition very clearly and quickly. If you can’t, you have work to do. Continue to narrow and refine your thinking until you can. Once you can articulate your value proposition, you're ready to take your message to your potential clients.

By the way, narrowing your value proposition doesn’t mean that you can never offer your expanded list of services. Once you have an established client relationships, you may be able to offer those additional services.

The Goldilocks Syndrome can work the other way, as well. Sometimes your product/service package is too narrow to lead to success.

This is a scenario in which you should ask the second question, “Is there a segment of the market that would appreciate what differentiates your product/service offering, and is it large enough to support your business”?

If answer to each question is yes, terrific. If not, you need to enhance and expand your product offerings.

When you are starting out, you may find it easy to fall into the Goldilocks trap of having too many or too few product/service offerings. Too many may dilute your messaging and lead to brand schizophrenia. Too few offerings may make it hard to generate enough revenue. It takes work, but you can find the right mix by asking the two questions listed above. Once you have done that, you are ready for the third question, “How will I take my message to the market?”