Stop Saying Yes to Bad Revenue

 

To Niche, or Not to Niche?

One of the most challenging decisions founders face is whether to specialize or remain a generalist. While generalizing may seem like the clearest path forward, focusing on a specific niche is actually the key to unlocking significant growth and scalability. 

Many agency founders start their journey as generalists, accepting a wide variety of clients and projects. This can be beneficial in the early stages of building a business because it allows you to explore different industries, build a diverse portfolio, and generate much-needed revenue. However, as your agency grows, this lack of focus can become a hindrance rather than an asset.

The Challenge of Saying No

As difficult as it can be, agency owners must learn to say no to opportunities outside their niche if they want to grow and scale. This can be particularly challenging when faced with lucrative offers from clients in different industries. Corey Quinn explains, “There’s a psychological barrier that they have to get through to stop saying yes to bad revenue because that’s what got them their initial success.”

It might seem okay to keep saying yes to everything that comes your way, but accepting these opportunities can lead to:

• Disrupted operations
• Reduced efficiency
• Diluted focus
• Slower overall growth

Unfortunately, in this case, the “money is money” philosophy won’t cut it, and can actually hinder you down the road in your business growth journey. 

 

The Challenges of Being a Jack-of-All-Trades

So, what actually happens when we put money above specialization?

1. Operational inefficiencies: Each new client or industry requires a unique approach, preventing the development of streamlined processes.
2. Difficulty in scaling: Without a standardized approach, it’s challenging to train new team members and expand operations.
3. Reduced profitability: Constantly adapting to new industries or client types can increase costs and reduce overall profitability.
4. Lack of expertise: It’s challenging to position yourself as an expert when your focus is spread across multiple industries. 

 

The Power of Specialization

On the flip side, focusing on a specific niche or industry can transform your agency’s growth trajectory:

1. Streamlined Operations: By focusing on a specific industry, you can develop efficient, repeatable processes. It’s like a conveyor belt that pulls your client to the finish line with guaranteed results. 
2. Increased Efficiency and Profitability: Specialization allows you to optimize your operations, leading to higher efficiency and profitability. Corey Quinn likens this to a “Ferrari assembly line,” where introducing a different type of car (client) can disrupt the entire system.
3. Enhanced Expertise: Focusing on a specific industry allows you to develop deep knowledge and expertise, positioning your agency as a go-to resource in that niche.
4. Improved Marketing and Sales: With a clear focus, it becomes easier to target your ideal clients and communicate your unique value proposition.

When to Specialize

The decision to specialize often comes at a critical point in an agency’s growth. While it’s common to start as a generalist, there comes a time when the variety in your business starts causing issues such as losing employees or clients. 

This is typically the moment when specialization becomes crucial. 

When you find that your attempts to grow and scale are costing you money to pull in new resources, losing you clients because you aren’t selling yourself as an expert, or causing your operations to stagnate, those are sure signs that your agency is ready for a specialized niche. 

 

Conclusion

While the idea of turning away potential business can be daunting, specialization is often the key to unlocking significant growth and scalability for your agency. By focusing on a specific niche, you can streamline operations, increase profitability, and position yourself as an industry expert. 

Remember, saying “no” to opportunities outside your specialty isn’t about limiting your business — it’s about accelerating your growth in the direction that matters most.

To dig deeper into how agency owners can specialize in order to grow their business, tune in to this episode of The Progressive Agency Podcast to hear more from our guest, Corey Quinn.