When a company launches its business, many professional advisors suggest that entrepreneurs find a need and focus on that one niche, offering a solution to fill that demand. They are sought after when they are considered specialists in that one vertical*. This strategy works well, especially when there aren’t many competitors and they can capture a larger market share.
The Specialist Mindset
This mindset of being a specialist can work for many, but even if they are subject matter experts, their clients will inevitably ask them to provide services outside their comfort zone. At this point, they could:
Attempt to Learn Quickly
With this choice, unless it’s a simple task, it would be challenging to quickly provide a complex service or product to fulfill the client’s need on time. And you want to avoid underperforming by making false promises that can undermine your overall reputation and relationship with the client.
Partner with Another Company
Going this route can be a great option as they can work under your guidance to complete the task. The negative is that you’re trusting in the value they can provide; if something goes wrong, your reputation will still be at stake. Additionally, you do lose some of your revenue since you are outsourcing.
Refer the Client to Another Company
For this last option, the client may have someone in mind, and you need to hope they are team players since your work may overlap. There’s also the chance that the company they choose may also offer the services you provide, which could lead them to eventually turn to that contractor to manage it all.
Expanding into Additional Verticals
If requests for other services come in frequently, consider expanding into additional verticals. You would then be seen as a generalist, capable of going outside your comfort zone and providing a broader range of products or services.
Reasons for Becoming a Generalist
The world needs specialists, but generalists often choose additional paths after they have been in business performing solely as a specialist. There are many reasons this happens:
Increase in Requests for Diverse Solutions
As a business primarily focused on government contracting, you might find yourself facing a demand for broader or different solutions. This can prompt you to explore additional verticals within government contracts to better serve your federal and state-based clients and stay competitive.
Reduction in Demand for Initial Vertical
This could occur due to evolving technologies or market needs, especially within government agencies.
Industry Overcrowding
When many competitors provide the same products or services and seek the same government job contracts as you do, it may prompt you to diversify.
Higher Barriers to Entry
Upfront investments or restrictive government regulations might make it challenging to enter or compete in your initial niche, especially if you are seeking government contracts for small business.
Changing Interests
Your vision and passion may evolve as you gain more experience. If you’re not passionate about what you do, it’s likely you won’t excel in it.
The Benefits of Being a Generalist
Many times, generalists are created through failure. When initial attempts do not succeed and you continue to learn and try again, you will eventually find yourself flourishing. This process allows you to learn more about what works and what doesn’t.
Innovation and Flexibility
Generalists are often more innovative and flexible, enabling them to see the bigger picture and utilize their troubleshooting skills. When you are a generalist and have gained experience and expertise in more than one vertical, you will also become a valuable resource, as you will be better able to connect the dots when services overlap.
Steps to Becoming a Generalist
Ready to consider working your way to becoming a generalist?
Do Your Research
Just because something sounds good doesn’t mean it’s a sure bet. Perform due diligence to ensure there is room in that space, that it’s profitable, and that you’re equipped to scale, especially in government contracting.
Take Baby Steps
Don’t spread yourself so thin that you’re merely “OK” at everything but not an expert in any one area. When you are after govt contracts, carrying necessary expertise is crucial.
Learn the Jargon
Understanding the industry lingo will help you express your capabilities effectively. Do you speak fluent governese?
Continue to Learn
Absorb as much knowledge as you can and consider hiring experienced staff to help you along the way.
Say Yes to New Possibilities
Being open to new opportunities might lead you to exciting and profitable ventures, even if you are a large business. Never shy away from government contracts for small business. You can always be someone’s prime or team up to ensure you have better grounds to win government bids.
Are you ready to give it a try? Start small in one new area outside your comfort zone and see where the adventure takes you.
*BUSINESS VERTICAL: Business niches where vendors serve a specific audience and their set of needs.
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