I think that the wider range of services enterpreneurs offer - the better. So, if for example you develop website you can also offer web hosting, domain name registration and website promotion solutions. If you provide high quality for all services you will get more sales and therefore will make your business more competitive at the market.

Whether you decide to sell one product or many, I think the key is to have them all appeal to your ideal customer, or target market. For instance, a website that sells running shoes, cowboy boots or sparkly shoes for school girls, etc.    By doing this, you give your customer enough options that they can return to buy again and again, but you can also more easily establish yourself as a leader or 'go to' person in your particular space (not to mention higher search engine rankings).

I think that you really hit the spot, youngentreprene, when you said where to 'compete'- If you have only one product to promote its easier to rank high with these keywords in search engines but even if you do rank high the amount of traffic you can get is a lot less than other keywords that represent wide range of products, which of course is harder to compete. At the end its your consideration where to compete and what pays off more for you.

I agree with David. It's easier to start small, and build on tested successes. You can learn how to manage your site, and to service your growing customer base as you add product. A multitude of good products don't mean much if you can't deliver them consistently and promptly.

I believe it's easier to go with a small set of products and rank for those. If you are just starting, this is the way to go. What you will lose with this strategy is the long tail. If you have limited startup resources, I recommend this route. It's better to become a big fish in a small pond. You can always expand later.

It depends on how you set up your site. I personally believe trying to rank well in a specific keyword is good, as this will help you top search engine faster specially keyword that is not heavily targeted by competitor. But on a business side offering a wide range of similar products will increase your chances of getting customer to return.