The Predicament of a Generalist (and Why You Need to Specialize)
In this article, the author shares his views on why it is incumbent to become a specialist.
I want to lay this out right up front: The primary reason to specialize is that it is in the best interest of the clients we serve. It allows us to focus solely on them, truly care about them, patiently learn more about them, and create more value based on what they know they need (or what we know they need) … because we’re an expert in the niche.
We all start our practices (or positions) as generalists. We have little training, practically no experience, and likely no mentors. It’s almost impossible to specialize. And we must pay the bills.
But as time passes, we see what type of work we like (and are good at) and what kind of clients we enjoy serving. It’s time to pick a specialty—a practice area, an industry niche, or a combination of both.
If you don’t specialize, here is what your classified ad looks like:
Valuation Generalist
Need a valuation? I can value most businesses for most purposes. If I haven’t valued your type of business for the specific purpose you need, I’m happy to learn on your time and your dime. The timing of my report may need to be adjusted accordingly. And since I don’t have any notable area of expertise, I compete primarily based on price. I may not be the lowest bidder for your valuation project, but I will be near the bottom.
But when you have a niche, your classified ad might read like this:
Valuation Specialist
Need a valuation for your construction business? Look no further—that is all I do. Because of my reputation, I have a national practice that has enabled me to solve your valuation issues, multiple times, successfully. Because of my experience, I can also assist with operating expense analytics, financial projections, and debt negotiations. You build buildings—I build you. If it sounds like I can help, I’d welcome the opportunity to talk with you.
- Who do you think provides more value?
- Who do you think can charge higher fees?
- Who do you think has fewer clients but earns more?
- Who do you think has more time, money, and freedom to enjoy life outside their practice?
Most practitioners I talk to say they don’t specialize because:
- They are afraid that it will limit them (it doesn’t limit you, it focuses you; which frees up all sorts of time as you only pursue projects that are in your wheelhouse).
- They feel there aren’t enough specialty clients where they practice (if there are businesses in your specialty in your state, you have a state-wide practice).
- They believe they can’t bridge the cash flow gap while transitioning from generalist to specialist (many others have done it successfully—of course, you can too).
So What?
If you don’t have a niche, you are hemorrhaging time and money.
- Time because you have steep learning curves for all of the one-off projects you take on.
- Money because you can’t charge the fees you deserve for the expertise you would otherwise bring to the table.
In Real Life
Most generalists command less respect by clients and peers than specialists. Is that how you want to be seen?
Most of the clients generalists serve are small. There is nothing wrong with that, per se, but is that providing all the intellectual challenge you want?
Most of the work generalists perform is perceived as a commodity. As long as you are going to put in the time, wouldn’t you like to command higher fees?
When you have a problem that you want solved, successfully, don’t you seek out a specialist? Isn’t what the specialist offers how you want/expect to be treated and served? What about your clients?
Everyone has a different idea of what a successful practice is. The practice you want is personal because it is based on what “successful” means to you. I help practitioners focus on the strategies and tactics to build/grow their versions of successful practices. If you want some help with that, e-mail me at rod@rodburkert.com.
