This chapter discusses the key concept involving one’s target market and the center point of any company, its customers. Jarvis states that “too often businesses forget about their current audience- the people who are already listening, buying, and engaging” (Jarvis, 2020, p. 25). These individuals are far more important to a business than the people the company is trying to reach. Oftentimes expanding and attempting to gain new customers in new market segments can be hurtful, opposed to helpful. Businesses looking to do so, must go about this decision cautiously, making sure to listen, communicate with, and help those who are already paying attention to the company.
A study conducted by the Kauffman Foundation illustrated that 86% if companies succeeded in the long term did not take venture capital funds. This is particularly because the company’s interests may not always align with the interests of its backers, while potentially leaving the business with less control, resilience, speed, and simplicity (the primary traits of a company of one) (p. 28). This is very noteworthy, as many entrepreneurs might be blinded by the idea of gaining large amounts of money to fund and start their dream business; however, this business move is not always entirely beneficial in the long run. Another point worth noting that directly relates to the financial aspects of starting and maintaining a business is spending based on current versus predicted growth. Oftentimes, businesses spend money based on what they expect to make in the future; however, Jarvis argues that businesses should allocate spendings according to what they are currently making, not what they may make in the future (p. 32).
The Hall of Fame basketball coach who led 5 teams to the NBA championship coined the term “disease of more”. He repeatedly noticed that winning players began focusing on more, instead of better; they would let their ego interfere with all of the tasks that helped them win in the first place. They strived for more accolades and media attention, instead of improving their gameplay (p. 33). This same concept can be carried into a business scenario. Not all businesses need to be scaled. Instead, entrepreneurs should find the size that works for them and from there, continue focusing on becoming better (p. 34).
This book continues to so a great job of introducing new perspectives that I have yet to see for myself (until now). For example, when you hire employees, yes, they are there to aid your company and ultimately maximize the company’s profits. However, you become the source of income that pays for their home and feeds their families. This is a heavy responsibility. This introduces a new perspective to consider, surrounding the thought that scaling up is not always best for all companies.
Jarvis concludes this chapter with the following thought-provoking messages. The following has been retrieved directly from his book.
BEGIN TO THINK ABOUT
- Whether you are payign attention to your existing customers or just your potential customers
- Whether you couldmake your busienss better (howveer you defien that) instead of just making it bigger
- Whether your business really needs scale to succeed
- Where the upper bound to that scale might be, the place where profit and enjoyment have diminishing returns
- How you could turn envy of others into enjoying their successes and learning from them (p. 44).
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