Here's a little background on our "business," which is really just a pretty profitable hobby at the moment. The husband had a little wood working business he called Steve's Wood Shop several years back, prior to the grand ol' Internet. His entire market was minimized down to one local flea market, word-of-mouth, and a few flyers at the market. Needless to say, he didn't do very well and gave it up.
Fast-forward a few years and enter his new business student wife who also has a love for all things wood:
I found one of the very few items he'd kept in storage from his earlier venture and with permission, and a lot of doubt on his end, I posted it on a local internet sales site just to see what would happen. Ended up selling 6 within an hour. We had to set people back a few days and rush off to the lumber store in a hurry so we could get that template and make a few more. The next day, 4 orders, then every day that week at least 1-2 orders and about 20 on the weekends PLUS about 25% of our customers returned because their friends and family wanted one too.
So, we're now up to our maximum output due to time restrictions but we're making pretty good profits.
The question is (finally), do we continue with this one single successful niche market product until our local market is saturated or do we attempt to scale back so we can work on some other similar products that might yield even higher profits, and gain a larger customer base and move closer to launching ourselves as a bonafide business?