Developing new products is usually a long-term task, involving such things as market research design, product development, marketing, etc. Some companies will have existing production facilities and capacity to expand their product range, whilst others will not. Your business’s competitive edge might reside in only one or two products (perhaps because of intellectual property or patents pending) and loss of this could be disastrous to the business’s value.
Here purchasers will be concerned that contracts will not renew, particularly when the vendor leaves after sale. The problem is similar to having too few customers, above.
This is a particular problem with bigger private businesses trying to attract institutional investors or overseas buyers. Research has shown that the businesses with the biggest market share make the biggest profits and if you are in this league, or hoping to move into it, you must increase you share of the market in your industry, or sector, or niche. The time you have given yourself to plan your exit will determine to some extent whether you can achieve an enhanced market share through organic growth or acquisition.