Focus on Your Core Services for Best Results

By BNI & Referral Institute - Sep 26 , 2011

By Lester M. Salvatierra

A business college professor drilled into us that we should always “narrow our focus and stick to it.” Like many such business guidelines it made sense, but recently it really hit home.

I have friends in various businesses — health insurance, financial planning, mortgage lending, business consulting and a host of other professions — and in speaking to them over the last year, I’ve realized that each of us has approached, or been presented with, the opportunity to participate in projects or service requests that fall outside of our normal specialty. When business is less-than-full capacity, the first inclination is to take any business you can get your hands on. Why not? If you have spare time to do it then why shouldn’t you go after other similar types of business?

The issue is that when you do something outside of your core service, you’ve usually got a learning curve, which involves time. You can’t simply hang a new product on your shingle. You have to know and learn about it at some level to sell it with any competence. If you get enough of this same type of business, which initially did not fall in your main lineup of products, then you can perhaps consider making it one of your regular service offerings and you have automatically broadened your product business scope. Instead of just selling widgets A, B and C, now you have A, B, C, D and E to sell. If all of them are aimed at the same market group and they naturally blend in together you have a good mix. Nevertheless, you need to be aware that you now have five products instead of three. This will increase your marketing expense.

A friend of mine who’s a printer is a successful example of a good mix: He started with standard paper printing products and now offers specialty imprinted items, banners and even car wraps. The blend of related products has been profitable for him.

Pulled in Different Directions

A problem arises when you get requests from different directions that don’t speak to your core service or product or specialty. In the effort to get more business and satisfy more customers, you gradually become the jack of all trades and the master of none. Viewed from the outside, the perception will be that you cannot survive focused on one main thing so you have to do many and your integrity and reputation suffers.

One gentleman I’ve known for years offered financing for various projects, then he added merchant card services and a few months later he included home mortgage financing. Just recently in speaking with him, he justified his strategy by saying that if he offered enough services, then he wouldn’t have to say no to anyone. After that, he added immigration services in helping immigrants get properly documented. He was like the fisherman with 20 poles in the water. The problem was that each pole was in a different lake!

Here are 3 guidelines to avoid falling into the “I can do it all” category:

1. Identify your core services and products. What do you really want to do and what do you excel in? Identify your experiences and strengths and market only what you do best. If you are good at analyzing financial documents and think logically, then don’t try selling prepaid legal services or including them in what you do. Solidifying an “elevator pitch” will help you narrow your focus because if you can’t state your core business in a couple of sentences, then you either don’t know what your focus is or you’re spread too thin. Become the specialist and avoid becoming the generalist.

2. Learn to say “no.” If you spend enough time networking, you’re going to be approached to add some service or market some product or perhaps add a new feature to your core business. Be firm in letting people know you are only focusing on your core expertise. Even attending an information seminar on something that doesn’t fit within your business model or area of service is a waste of time. Discipline yourself to stay on track.

3. If you feel inclined to add a new service, then always test-market it, and add no more than one new service at a time. By adding only one element, you keep your test phase manageable and, more importantly, you do not appear to be flaky and jumping around from service to service to your clients. Your goal is to always add another service that will help your clientele and improve what you already do for them. The test phase will also help you evaluate if there is a sustainable market for your new product or if it will appeal only to a few additional clients.

In the interest of efficiency, you don’t want to pursue a tiny market with little growth potential. In a sluggish economy, people scramble to make ends meet and tend to accumulate more “add-ons” to their standard product line. On the surface, this seems fine, but it will distract and take away time and effort from your core strengths.

During slower periods, it makes better sense to re-focus on and improve your main business. What can you do to boost your main services and what new markets can you penetrate? Can you partner with an adjunct business to pool a marketing strategy? These are all questions you should be asking yourself to keep your core business intact and on target.

Lester M. Salvatierra is an experienced and licensed Finance Specialist with First U.S. Finance. He helps small to mid-size companies lease or finance a wide variety of equipment and special projects nationwide. He is passionate about referral marketing and is a business networking coach and Area Director for Business Network Int’l in Ventura County, California. Sign up now to follow his business networking blog at: http://theRogueNetworker.com