Business 101: Hyper-Specialization
Posted on September 23rd, 2008
The general consensus is that you should never put all your eggs in one basket. If you are investing in stocks or mutual funds, you are encourage to diversify your portfolio. The same can be said about starting a business, because if your venture happens to have more than its fair share of troubles, you will still be a reasonably healthy position. That’s why you are oftentimes told to be flexible in the products and services that your business offers.
Well, there happens to be another potential strategy out there for you to consider and it just so happens to be the complete opposite of the “don’t put all your eggs in one basket” philosophy. It’s the “put all your eggs in the smallest basket possible” mentality. The concept here is to take specialization to the umpteenth level, offering ultra or hyper-specialization in a very specific product or service. This way, your business is highly targeted, approaching a very specific niche, and easily brandable. After all, you’ve got only one or two items on your product list.
An example of this idea was provided by Vancouver blogger Roland Tanglao a few months ago. This idea is for a Bare Bones Cafe where they serve nothing but espresso-based coffee drinks. There is no additional service, no additional product line. You will not find any drip coffee, free Wi-Fi, or even any tables. It’s just a counter and a barista. This sort of ultra-specialization may attract a crowd initially and the truly diehard fans, assuming that the coffee is good, will probably come back.
What are your thoughts on opening an establishment like this? The lack of free Wi-Fi would keep out the loungers, as would the lack of tables. Are you kicking customers out the door even before they come in?
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2 Comments
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I’m not sure about the espresso-only coffee shop. I’m a huge coffee shop fan, but I like variety. And I like being able to sit and use some free wi-fi. Perhaps this specialized model could work in big cities – a super-fast, walk-up espresso-only shop. I can see that people could love that.
Lawyers are typically encouraged to specialize, especially in larger cities. The idea is that you become the go-to lawyer for one single type of problem. It’s easier to market yourself, and you can then focus your continual learning on a specific area.
can’t wait to see what people think :-) !