MICRO CONTRACTOR
  • BLOG
  • WHY
  • RESOURCES
Picture

​Work better. Live better.

SPECIALIZING VS. DIVERSIFYING, PART 1

5/11/2015

0 Comments

 
It's a debate that I've thought about a lot over the years. The smaller your geographic market is, the more pressure to be a generalist. The larger your geographic market is, the more opportunity and incentive to specialize. But which business model is better? Or more importantly, which one is right for you?

​Let's consider some benefits for each model...
Benefits of Specializing:
  - you can become highly skilled quicker
  - you require less tools and equipment
  - you have far less competition
  - you can charge more for your knowledge and experience (think of a classic violin repairman vs a
    framer - both are carpenters, but one has far less competition)
  - your work flow is more efficient (you're not constantly changing gears throughout the day or week)
  - you have more control over your work, setting more of the terms
  - it is much easier to build a referral network (people working in peripheral services won't be afraid
    that you will 

    steal their customers;  people feel safer referring experts as they are putting their name on the line)
  - your marketing becomes much easier and clearer (if a prospect is confused about what you do, he
    will reject it all)
  - less stress
  - since you need more customers you build a wider, more stable base for your business (you're less
    likely to rely on 

    just a few customers)
  - residential customers usually have a specific need and are looking for a specific solution
  
Benefits of Diversifying:
  - you have more streams of income, providing some financial stability
  - you don't need as many customers (you can sell more services to the same client)
  - you can adapt to market changes quicker (seasonal, trends, economy, etc)
  - more opportunities to learn and develop new skills
  - learn to be adaptable and deal with change
  - deliver more value - get more things done, quicker and cheaper for the customer
  - some commercial customers usually have multiple needs but prefer the simplest solution

What is best for you will depend on your market, your objectives and your personality.  

Next week in Part 2 we will consider some examples of each, as well as the 3 Key Factors to consider before deciding to market your service business as a niche or generalist.

What is your preference?

​


​If you appreciate the free content on MicroContractor Blog, please share with a link and click the article sponsor's ad:
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

      Let me know...

    Submit

    Categories

    All
    BALANCE
    BOOKKEEPING/ACCOUNTING
    CHALLENGES
    COACHING
    CUSTOMER SERVICE
    EFFECTIVENESS
    EQUIPMENT
    ESTIMATING
    FAILURE
    FEAR
    FUN
    GUEST WRITERS
    HIRING
    INITIATIVE
    INTERVIEWS
    MARKETING
    MONEY
    NEGOTIATING
    OPPORTUNITIES
    PAINTERS
    POSSIBILITIES
    PRICING
    PROFIT
    REVIEWS
    RISK
    SEASON 1
    SEASON 2
    SEASON 4
    SPECIALIZING
    STRESS
    SUCCESS
    TAXES
    TECHNICAL
    TIME
    WORD ON THE STREET
    WORKING SMARTER

    Archives

    June 2020
    May 2020
    February 2020
    December 2019
    October 2019
    September 2019
    June 2019
    May 2019
    October 2018
    September 2018
    April 2018
    March 2018
    February 2018
    November 2017
    October 2017
    September 2017
    August 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015

Proudly powered by Weebly
  • BLOG
  • WHY
  • RESOURCES