I am posting this in reflection to a post asking about gross sales and potential.
Comparisons have their place. They can also be counterproductive. Each company, each person, has a set of goals and values they want to fulfill. When comparing one company against another, whether your own, or when doing research, recall the goal of the company. There is a small one man company that does very good quality work. His intention is to do great work by himself. He charges a premium price in part due to the fixed labor supply of one man. His goal is to make as much as he can before the winter months. His business model is built on the seasonal fluctuations of the residential market. Growth within the competitive storefront market is not part of his overall strategy for his business. He cleans homes and he does it well.
The company I work for has a different business model. We are a much larger company with many employees. We are a year round commercial company that does not slow down much during the winter months. We offer a variety of related services. We can afford specializations. In the cold winter months we are still working. Without the pressures of meeting all the financial goals in warmer months our pricing pressures are quite different. We have a different business model and different goals, which translates to the owners’ experience.
A person can look at both companies and immediately think the larger, well staffed, complex business is the better company. In reality the owner operated, one man show, may be a great fit for the goals of an individual. Having limited resources doesn’t mean poor services or poor margins. The level of care required for this one man operation to succeed is high. He may not be able to provide an all in one exterior service. He may do one or two things, but do them well.
Our company can handle large complex projects. What we offer is dynamically different from many other companies because of our particular goals. Comparing gross sales gives very limited information about a company. Our business goals and visions are often more complex than simple numbers can illustrate. Each companies geographical market along with multiple other factors will help or hurt the pursuit of certain gross sales goals. I find this helpful when thinking of our market and our competition. The way I then compare and contrast is influenced by a more macro approach to looking at potential.
Comparisons have their place. They can also be counterproductive. Each company, each person, has a set of goals and values they want to fulfill. When comparing one company against another, whether your own, or when doing research, recall the goal of the company. There is a small one man company that does very good quality work. His intention is to do great work by himself. He charges a premium price in part due to the fixed labor supply of one man. His goal is to make as much as he can before the winter months. His business model is built on the seasonal fluctuations of the residential market. Growth within the competitive storefront market is not part of his overall strategy for his business. He cleans homes and he does it well.
The company I work for has a different business model. We are a much larger company with many employees. We are a year round commercial company that does not slow down much during the winter months. We offer a variety of related services. We can afford specializations. In the cold winter months we are still working. Without the pressures of meeting all the financial goals in warmer months our pricing pressures are quite different. We have a different business model and different goals, which translates to the owners’ experience.
A person can look at both companies and immediately think the larger, well staffed, complex business is the better company. In reality the owner operated, one man show, may be a great fit for the goals of an individual. Having limited resources doesn’t mean poor services or poor margins. The level of care required for this one man operation to succeed is high. He may not be able to provide an all in one exterior service. He may do one or two things, but do them well.
Our company can handle large complex projects. What we offer is dynamically different from many other companies because of our particular goals. Comparing gross sales gives very limited information about a company. Our business goals and visions are often more complex than simple numbers can illustrate. Each companies geographical market along with multiple other factors will help or hurt the pursuit of certain gross sales goals. I find this helpful when thinking of our market and our competition. The way I then compare and contrast is influenced by a more macro approach to looking at potential.
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