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Scalability is Out – Purposely Small is In

This is the era of fragmentation, micro-markets, niche demographics. Twenty, even ten, years ago, tiny markets had to springboard to big markets or die. Today is different. A business that caters to a tiny niche market can survive, and even thrive, without lunging to a venture capitalist or an angel investor. Microbusinesses are an end to themselves. They don’t have to, and in most cases, shouldn’t try to grow bigger and scale.

Cloud computing, software as a service, office sharing, WordPress and social media, to name only a few factors, have severely cut the cost of doing business. One person can do what required four only a few years ago.

This means you don’t have to scale and grow, because your profit margins can be big even if your business is small. It’s not about gross revenues, but about what you take home. Being effective and efficient in a small market can reap big profits and avoid the headaches that come from employees and managing a complicated organization.

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