High Growth Businesses are Focused.

In the parable of the talents, we see the lesson in proving yourself first in an area and mastering that space before seeking expansion. Focus could mean starting small and building good systems and working culture before seeking an expansion that throws you in all directions. Most people are deluded to think a large business is necessarily a good business. A large business, on the contrary, could be a monster without a core area of competency and the necessary support structures to manage the business.

Successful businesses keep an eye on the core area of focus. They are focused in their offerings and customers. They classify their customers and can target loyalty programs for their top tier customer group. Focus also means they will exit or turn down attractive deals because of lack of fit.

Focus Focus can be initially costly and slow to deliver growth but soon special expertise valued by the market is built. Skills come with experience and research and innovation soon create the edge that the customer will pay for. Costs can fall dramatically much later as the experience curve delivers new economies that create even more enhanced competitiveness.

What do you do if you find yourself in an area that is no more generating revenue or has lost its attractiveness? Simple – Exit. Focus does not mean to keep backing a loser. Rather it encourages persistence over a long enough time to build reputation, brand and special expertise to enable innovation in an attractive sector of the market. Your focus could be in terms of your product offerings and it could be also driven by your customer segmentation.

Focus does not always mean high costs but must imply exceptional service and the ability to spoil the discerning customer. When experience in a customer segment creates economies that can enable you to be more cost effective – be cautious not to give away value that customers are prepared to pay for. Instead sell value that cannot be easily matched to your target customer tier. As you gain even more experience and capabilities use innovation to diversify to new attractive niches related to your core business. Growth is good when deserved by deep competence and past market success and experience but cancerous when driven only by opportunity.

Matthew 25 [28] Take therefore the talent from him, and give it unto him which hath ten talents. [29] For unto every one that hath shall be given, and he shall have abundance: but from him that hath not shall be taken away even that which he hath. [30] And cast ye the unprofitable servant into outer darkness: there shall be weeping and gnashing of teeth.

The next post will discuss Market Strategy and Innovation. For the full article you can click – DOWNLOAD ARTICLE.

More on God’s perspective on wealth can be found in my recently published book Wealth out of Ashes

For related articles and free subscription to articles by the author please click icon below.