OR Your Business’s Core Capabilities

Here is an observation that I have made over the years: small to medium businesses who keep the Main Thing the main thing, thrive and succeed.

What do I mean by that?
Well, each business starts life a core function or capability – their main thing. For example: my own business started life as a brand-focused graphic design company (actually it was just me, but it was still a ‘company’).

Whether a business is a one-person freelance set-up or a company employing multiple people, there is a temptation to try and grow through adding more proverbial arrows to the quiver. That is, businesses attempt to diversify. This can, and does, work if you are a large business with a well established market and you have the capacity to diversify without harming your existing offering. Apple is a prime example, the computer company that now sells phones and music.

However, I believe that a small business potentially sets itself up for problems when they don’t stick to their core offering. My observation is that doing so stretches the already thin resources to the point of breaking – sometimes doing irreparable damage to the business.

Stick to The Main Thing
If a business does something well, and sticks to doing what they do well they have every opportunity to solidify and then grow.

My frame of reference is the design industry and one doesn’t have to look too far to see this point proven time and again. A designer like David Airey has kept his focus on brand identity, and in doing so has built an international client base (and following) and has allowed him to create some stunning work. His focus has also allowed him to create two successful blogs and to write a book on the topic of logo design. He is a specialist – which I believe is a good thing.

My own business has continued to work in the area of brand-focused design, despite the frequent temptations to travel down other design paths. By doing so we have established a solid client base and a great reputation, not-to-mention doing some great work along the way!

Keeping the Main Thing the main thing keeps you focused and enables you or your business to become specialists. A specialist who is truly good at what they do has the capacity to grow their business, because they are focused and can attract clients who need specialists.

An important proviso…
… is that you still have to keep on the forefront of what you do. Keeping to your core capabilities does not mean resting on your laurels; in fact it should mean quite the opposite. It should mean that you can keep up-to-date, or better yet ahead of the game, of what is happening in your industry sector. It should mean that you are constantly looking for ways to improve the way you deliver you core offering.

So, I believe that if you or your small business sticks to your core strengths and capabilities, you have a better chance of success over those who try to grow through diversifying.