As a small business, you might dream of landing that big whale of an account that is going to change your business drastically overnight. But should you go for that opportunity? Will it really benefit your company?
For small businesses, the surprising answer is commonly no.
But why?
Oftentimes, business owners have a dream of selling to the Fortune 500 or large players. But when pitching these huge companies, you are inevitably going to go up against very large competitors that come with endless resources. You will have to spend significant sums and time fighting for the account. Then you must look at the risk/reward....
What happens if you win the account?
You will have to staff up, sacrifice attention on other projects, and also concentrate a much larger percentage of your revenue to one account. In other words, you may increase your revenue from the deal, but you will also introduce a lot more risk.
There will be a day when you get the call that the account has been lost. When that happens, a large portion of revenue will disappear, many of your expenses will remain, and the stress levels will be through the roof. You’ll be asking yourself: was that big account really worth it? It’s important to go for the win, but the wins you pursue need to be intentional so they don’t cost you in the end.
As a small business owner, you are better off picking a niche. Serving a larger number of smaller and more loyal accounts can help you grow modestly but consistently. That way, when you do go up against competition, you will be more confident and better equipped to beat them for the project. You will have niche industry expertise, a relevant portfolio, and experience pitching against smaller competitors.
It’s better for a small business to be a big fish in a small pond.