The Benefits of Narrowing Your Focus in Business
When it comes to business, most people think that the more markets they conquer, the better. But this isn’t always the case. In fact, specializing in one area of business can have a number of benefits for your company.
- You will become an expert in your field.
- Your customers will know what you’re good at and come to you for those services.
- You can focus all of your energy on becoming the best at one thing.
- Marketing becomes easier as your target market becomes more “defined”.
Some notable companies that have specialized and reaped the rewards are Apple with its technology products, Amazon with its online retail store, and Starbucks with its specialty coffee drinks.
In his book, Rice, Noodle, Fish, Anthony Bourdain discusses the Japanese approach to business and how they focus on one thing and get really good at it. He mentions how sushi chefs spend their entire lives mastering the art of sushi making, and how this dedication to a single craft has led to some of the best sushi in the world.
Bourdain goes on to say that Western businesses could learn a lot from the Japanese approach. He says that instead of trying to be all things to all people, we should focus on becoming experts in our field and delivering the best possible product or service. This strategy can deliver increased profit and a more successful business.
There are a few disadvantages to specializing in one area of business. You may become complacent and reluctant to try new things or you may miss out on opportunities in other or new markets.
Worried that there are already too many other businesses in the space you want to specialize in? There seems to be room for improvement in every industry. Walk into Sephora and you will find hundreds of lines of makeup – all selling the same products with different branding. What about vodka? Tito’s famously only sells one type of vodka – and nothing else. It doesn’t specialize in flavors or mixers, just vodka and as a result, the brand is well known for its quality product.
However, there are some ways to overcome these disadvantages.
1. Focus on becoming the best in your field. This means developing expertise in your area and offering top-quality products and services.
2. Market yourself as the go-to company for a certain type of product or service.
3. Stay up to date with current trends and changes in your industry. By doing so, you’ll be able to adapt your offerings as needed and continue to attract new customers.
If you are thinking about narrowing your focus in your business, talk to a trusted advisor or others who have gone down the uncertain road of specializing in one industry or product.
You can talk to us too. Go to www.firststepsfinancial.com and click on the Let’s talk button to set up a time to continue the conversation.