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April 17, 2001
Q: We watch for your column every week and appreciate your encouragement to focus and think small in order to get big. I have to admit, it’s really hard to do what you advise, mainly because it seems unnatural. Can you give some examples of companies which have done or are doing this?
A: You’re right. In a way, it does seem unnatural. Especially if you’ve been in business for many years, the whole idea of “niche think” may seem unrealistic. After all, you may have started out in an era when general department stores and daily newspapers actually made money trying to be all things to all people. But those days are long since over and today more than ever before, it’s definitely survival of the nichest!
Some recent examples of companies that understand the importance of cleaning their plates include:
2. Borders Books. Alas, like too many other businesses, it had to bleed painful red ink before getting rid of the online business. In a recent announcement, which Borders probably now realizes should have come at the beginning of the dot.com boom, it announced that instead of running its own electronic store, Borders would form a strategic alliance with Amazon.com. This makes niche sense for both companies. Borders will get commissions on all books sold through Amazon, while Amazon can play to its own strength: books and lots of them.
3. Lennertz-Coyle Associates. A Portland-based architecture firm, LCA & Associates are masters in New Urbanism, a refreshing approach to community planning and design. Though frequently asked to do architecture, per se, the firm steadfastly declines that work. Instead, its focus is nearly exclusively on the planning and design of new communities that reflect its approach to New Urbanism. Now, you might think this is focused enough, and it could be for a little while. But LCA & Associates has added their own twist to planning and design.That twist is called charrette, an sophisticated process for arriving quickly -- and with consensus -- at the ultimate design. Like the Ackerley Group, LCA & Associates doesn’t have a cluttered plate. It’s one that is narrow and increasingly deep.
Though they are still learning, Amazon and Borders are going in the right direction.
Q: I am currently a senior manager with a large public utility in the region. I’ve been with the organization for many years and am planning to retire soon. Actually, I’d like to leave now but need to ensure my financial statement is more stable than the stock market.
To ensure that we continue to have a good quality of life— and because I think I would enjoy it— I’ve been seriously thinking about going into consulting. The problem is nearly everyone I speak to tells me you can’t make any money consulting. Aside from that, there are so many jokes about consultants, I’m wondering if it can be a serious business. Your opinion?
A: Although I never shrink from giving an opinion in this column, I need to tell you that you’ve pushed a very hot button of mine. You are talking about one of the most misunderstood professions. Probably the bad wrap consultants have is because there are so many of us and for the most part, it’s an unlicensed, unregulated business which means anybody and everybody can get into it. The trick, however, is staying in.
The good news is that the amateurs go by the wayside quickly. Those professionals who are willing to work hard and create a niche for themselves build exceptionally rich and satisfying businesses. You’ll not be surprised, of course, when I tell you that the key to your success will be defining your own niche and then putting a price tag on it. Those horror stories you hear about not being able to make a living in this business are nearly always from and/or about people who couldn’t put a reasonable price on their knowledge and expertise. And if they could do that, they couldn’t communicate it.
All this is to say, consulting is the fastest growing profession for a reason. It’s important and needed. When you meet someone who tells you it’s a joke and you can’t make a living engaged in it, invite them to laugh with you all the way to the bank.
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