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July 10, 2001
Q: We've been in business for several years and have built up a substantial following. The problem is, recently our revenue curve has been getting flatter and flatter. We market consistently but tend to rely on our track record to keep us going. In our office building we're surrounded by young upstarts with so much energy I'm beginning to wonder if the "Fat Cats Don't Hunt" theory describes us.
A: It sounds to me as if you are answering your own question. Have you gotten complacent? Riding on past successes simply doesn't cut it today in any aspect of business. If we are to continue prospering--that is, being in charge of our lives and businesses, we must always be ahead of the curve.
Although you didn't inquire, I'll pretend you did ask if I even subscribe to the "Fat Cat Theory." The answer is yes and no. Yes, as I already indicated, you have to be careful not to get complacent. But being a little chubby gives you the advantage of carefully planning, and "risk with cushion" mentality. The problem here is, you might get so cozy, you'll stop taking those risks which made you successful in the first place. But there are problems with feeling too skinny. Whereas fat cats may err on the side of doing nothing, their skinny relatives may feel they have to take anything that walks in the door. Either course is unhealthy for a person growing a business or career. I suggest it's time for you and the company to get a complete check-up. Look at where you've been, where you really want to go, and what are you going to have to do to ensure those young upstarts don't make you history. Actually, no one can make you history. If it happens, you'll do it yourself.
Q: I'm a recent entry into the commercial real estate industry. Some of my friends say I'm crazy because the business is so competitive. They also say the industry is changing so much I'll never really get a handle on what's going on. It also seems to be boom or bust. From my vantage point, however, it appears to be very interesting and potentially lucrative, if I do things right, so I've decided to give it a go. Any suggestions you have for making sure I am successful will be very much appreciated.
A: The suggestions I have for you apply to virtually anyone else seriously interested in succeeding in today's rapidly changing business world, especially those of us selling professional services. Some of my priority recommendations include:
1. Worry less about how rapidly changing your own industry is and focus on change in your client's industry. For you to be truly successful you must understand every nuance of your clients' world view, including their "pains," their goals and perceived needs. Once you do that, you are in a position to describe how your service will help them achieve their own priorities. It is critical to understand that your widget (real estate) is only a vehicle for your clients to achieve their goals; it is rarely a goal in itself.
2. Forget about competing against anyone else. Yes, you read the sentence right! Forget about competing. It won't work. You can't win any more by competing against anyone else in the same field. Instead, you win today by distinguishing yourself from everyone else. By being perceived as special, singular, unique, one-of-a-kind. Only game in town. Niched. When you are truly niched, you have no competition. It's a contradiction of terms. You are in a perfect position just entering the field to shape a niche for yourself that is truly intentional and powerful. Most of all, don't allow yourself to fall into the trap of thinking about or blaming competition. Concern yourself with what you stand for and what others perceive you stand for. By the way, what is your niche?
3, Don't allow yourself to fall into the trap so many other hard-working but naive people do; that is, trying to be all things to all people. Especially when you are entering a field for the first time, unestablished and with no clients, it's tempting to take anything that comes in the door. Do this now, however, and I guarantee you it will be short-term gain and long-term loss. Who you do business with today strongly influences who you work with five years from now. You must begin now choosing who your clients will be and who they won't be.
Q: When you talk about niching something, I'm wondering if the same rules apply to all the "widgets" to which you refer. That is, are the rules the same for niching a professional service as they are if I am selling washing machines?
A: An important question. Thank you. While the basic niching steps apply to professional services and tangible widgets, there are some key differences which you must keep in mind if you are serious about your niche success in a professional service. Some of them include:
1. For starters, in the professional services the primary thing you are selling is you. I don't care what the field is--law, insurance, real estate, etc. It doesn't matter. While you must focus in on a specific area, your real niche is you. What you bring to the table. Your way of doing business. Your approach. Your reputation that distinguishes you from everyone else in your field. You must begin to think of yourself as bigger than any industry and certainly bigger than whatever technology you are dealing with. A person to be reckoned with. Someone who makes an impact wherever you go. You are helping clients address very big issues in their personal and/or business lives. The bigger the issue, the less important money is in determining who a person chooses to perform a professional service. In issues of huge consequence, people choose other people who they perceive can make the difference. And that's why your primary concern should be developing a reputation as a person of consequence in your field and all the way around!
2. Once you understand how important you are in niching a professional service you understand better why our marketing strategies are so important in conveying just the right tone and message. Strategies such as cold calling give off messages of desperation and begging instead of developing a sense of respect for your capabilities and presence.
3. And not the least important difference between developing a professional service niche and one related to tangible products is that your professional service doesn't go on sale. If you are a surgeon, you don't give volume discounts for appendectomies and cut-rate prices if business is slow. At least not if you want to grow a serious business. People buy other people they perceive to be already successful. Begging through cold calls and slashing prices rarely conveys a tone of self-confidence and success. Regardless of what service you are selling, think of yourself as the "surgeon" of your industry. No fire-sales needed. Your reputation speaks for itself. That's called being niched.
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