Jack Welch says only compete in a market where you can be first or second. That has always stuck in the back of my mind because if your company isn’t close to being in the top 5 then you need to stop and pick another market. If you’re in 3rd, 4th, or 5th then you can strategize on growing and making your way up to 1st or 2nd. But if your company is in that group of everyone else you will be stuck.
Our company has grown smaller over the last several years because we are following what Jack Welch suggested. We can’t compete as the biggest so we went out and found another market. Our company UltraClean used to provide water, fire, smoke damage restoration, content pack out and cleaning, with cleaning services of carpet, upholstery, tile and detailing of autos, bloodborne pathogen cleanup, handyman services, and our construction department for our restoration projects. Today’s model is different. We offer water damage restoration emergency services and structural drying only.
As a small company if you offer many types of services you can only afford to have so many staff. This means that you must cross train your people to perform other trades that they may have to do. Unfortunately if you learn multiple trades you can become good at them but not great at them. I want greatness, not only do I expect it from myself, but from my employees. In order for any of us to become great at one thing that means we must focus and simplify. Focus on one trade, simplify how many responsibilities so that the focus can be easy and simple.
If your company has one focus, one trade, you turn yourself from a contractor into a specialist. Once you’re a specialist you create a demand for your services and you can charge more. If you charge more than you will become more profitable, and then you can afford to pay your employee’s more, which means better and happier employees. If you’re a specialist you’ve taken yourself out of that rat race of competition and developed your own market with a focus on being great.
Developing your market you must develop a specified target market. We will cover that in the next blog. It’s too expensive and everything becomes about price when you compete with other companies. Develop your own market, stay small and profitable. You can build great things when you ReDesign your company. Experience the freedom of breaking away from the competition.