Big fish or many little fish?
Less than 4 years ago I met a gentleman about 4 years older than I was. He was a web designer for a fortune 500 company and he told me how he made $25,000 for every website he designed while freelancing on weekends.
At the time, I was running a web and design firm with many more clients than he did but he was making more than I was. He was also working fewer hours and producing quality similar to mine if not less.
I spoke with him about it and I realized he had no real external advantage.
His advantage was between his ears.
What do I mean by this?
He had decided that instead of using his 4 hours to bag a $5,000 deal, he was going to use it to pitch clients who paid 5 figures and above.
You’re going to go out everyday and work at least 8 hours on your business. It’s important to ask yourself if you’re going after a big market or small market.
It’s even more important to ask yourself why you have chosen the size of the market you are in.
In my experience many founders never sit down to think about this stuff. Interestingly, I listened to a report that said most business owners could charge more but wouldn’t because they were afraid of public perception.
Time is a commodity than can be invested. It’s prudent to ask yourself if the next 6 months will yield thousands, hundreds of thousands, millions or billions for you.
In nearly every market, you will find people who are giving and capturing 5 to 10 times the value that others are and with very little difference in the kind of product they sell.
What is important is not just how many people you employ or how many hours you work or how many years you have been in business. Those are all good metrics depending on the industry but remember that business success many times is simply calculated by value given to the market and value captured.
As long as you give more value to your customers than anyone else and find a way to capture more value than your competitors, your business will have a better foundation than most.