All Things To All People? Hardly.

One of the hardest things for a small businessperson to do is say “No”.  You just know that if you tell that one potential customer that you can’t do that which he is asking you to do – even though it’s not really something you’re equipped to do, or it lowers your profit margins so much that it’s not worth doing – you’ll never, ever get another customer and by the end of the day you’ll have to close your business and slink home in shame and despair.  Been there, believe me. 

Forget about it.  In any business, you have to know your limitations:  what you can do, and what you cannot do.  Trying to be all things to all people is a natural attempt by those of us crazy enough to be in business for ourselves to make sure that we have customers.  But no one is good at everything, and it’s vitally important for you to know what your business is, and what it is not. 

Here’s an example:  in a former incarnation, I had a successful human resource consulting business.  I helped small and medium businesses with HR stuff; I was kind of their “virtual human resource department”, as they were usually too small to afford an on-site HR staff member.  I learned quickly that it was important for me to know what I did well, and what I had no business doing.  I knew that I was great at creating personnel manuals, advising on hiring and firing practices, executive coaching, setting up basic HR departments, etc..  What I did not do well, nor did I have experience in, was employee benefits.  So how did I get around this, since most businesses need advice on benefits at some level?  Simple: I allied myself with the local benefits experts, and when I had a client who needed help with that area, I referred them to my colleagues who had the expertise I lacked. 

“Well, you moron,” you’re saying.  “That’s just throwing away billable hours!”.  Yes, as a matter of fact it was.   But what do you suppose my benefits colleague did when he had a client who needed expertise in general HR details, like policy manuals and employee evaluations?  He referred them to me.  We ended up with a win-win arrangement that allowed us both to prosper and flourish, and to offer services via each other that, alone, we couldn’t have provided to our clients.

Know what you do well and do it. Narrow your focus, and find those professionals in your area whose work you know and trust, and start forging alliances that will benefit your clients, and thus your business.  Your clients will think you’re a genius; you’ll provide better service; and your reputation among your professional colleagues will be sterling.