No, it isn’t. Mid-market executives who feel that way are coming from a scarcity mentality in which they believe that if they don’t scoop up every piece of revenue, regardless of whether it makes sense for the company, they’re going to starve to death. They get used to selling anything to anyone. This habit is an easy one to develop during challenging economic times due to the uncertainty of your customer base. It is even a tougher habit to break as the market improves because you become addicted to the revenue.
By contrast, an abundance mentality means focusing on a niche and dominating it. If a company doesn’t dominate a niche market, when it comes time for the marketplace to put a value on it, the market won’t know what kind of company it is. A company needs to develop a sustainable market advantage, focus on that advantage, and brand itself in the eyes of its marketplace, or it is not likely to succeed.
A classic book by Michael Tracy and Fred Wiersema that can be a useful read to mid-market leaders is “The Discipline of Market Leaders”. Tracy and Wiersema challenge leaders to choose their customers, narrow their focus and dominate their markets.
Twice during the last week I’ve had conversations with CEO’s that have wanted to break into new market segments and change their product mix. Neither of these are bad ideas, as long as the company can stay focused and dominate their new niche.
So a parting question. If someone did a Google search and your company name came up first, what would that search phrase be?
What are you known for?