This is basically about the strategic difference between targeting niche markets vs taking whatever comes your way.

Possibly the only thing in common I have with freelance engineers/consultants is that I am in the service industry. We basically sell time. Skilled application of that time, but time is our limiting factor, not the skill. Because we have the capacity to acquire whatever skill is needed for any task.

For me, after doing the generalist thing with my first business, and eventually failing, I stepped back and looked at the big picture. Who was making the money? And I saw it was the specialists. People who focused on a niche and dominated that market segment. Even successful organisations that seemed to have a lot of range, when you got down to their roots it started in a niche at which they excelled. The best or next best (Number 1 or number 2) or do something else where you can become number 1 or 2.

The specialist will be able to thump the generalist every time if the service needed is in their niche and even most times if it is close to their niche. The resultant reputation will also take you far even if you deviate quite far - but the skilled specialist doesn't deviate far from their niche. If the service required is too far away from their niche, they'll refer it away to another specialist more suited or simply walk away.

There are a few tricks to getting this right:
  • Identify a niche where you are/can become the best or next best which is big enough to be viable (think medium term),
  • Let your target market know you are a specialist in this niche, and
  • Identify companies and individuals in related fields that you can refer non-niche work to.

The logic behind the first two points are patently obvious. The third maybe less so. But if you start referring non-niche work away from you, you'll often get niche work back in return. You not only need to network build amongst potential clients, do it amongst your associates. This way you and your network of associates are all doing work that you are well-leveraged to carry out profitably.

From there, you can invest your gains in knowledge that will gradually broaden your range, building on the solid platform you have laid.

/Waits to be flamed.