“Specialize and thrive” or “Generalize and thrive”

11. Jan, 2010 0 Comments

Common knowledge is that freelancers have to specialize to thrive. The idea behind it is that you build up your skills in one area, so that those skills become more valuable.

There’s a smaller area of thought that is “Generalize and thrive“. Basically, the idea is that you have broad appeal, and your clients and prospects are diversified. The process of what you do is the same, but the content varies greatly. This way, you protect yourself from the market in much the same way as a diversified stock portfolio.

So which is it? Specialize or Generalize?

I am facing some decisions on the topic myself. I’ve been doing websites for 3 years now, and I’m thinking of expanding my services to include graphic design. Doing so will open up new clients, but I’ll be taking a hit to profits in the short term. I could also go the opposite way – I’m thinking that instead of expanding to graphic design, I should beef up my services and market to larger organisations.

Either way I go, I can quite easily fail. I might not have the skills to sell to bigger companies, or I might find that getting started in graphic design will take me backwards as I charge lower prices to build up a portfolio in that area.

Here are some factors to consider when making decisions like this.

Are you trying to get more work?

Specializing is growing in terms of project size, generalizing is growing in terms of number of projects. If you’re struggling to get enough projects, maybe generalizing is the way to go. If you’ve got a full book and looking to increase profits, maybe specializing is the way to go.

What’s your exit strategy?

Do you want to sell the business? Do you want to pass it onto your kids? Do you want to grow into a firm? Do you want to stay a solo freelancer? Are you doing this on the side?

What we want in the long term determines what we should do in the short term.

What is your environment like?

If you sell locally, live in a small town, and you’re not willing to travel, maybe it’s better to generalize. If you sell locally and you’re in a big city, maybe it’s better to specialize.

What do you want to do?

What type of work do you enjoy most? Do you need variety, or are you the type of person that loves reaching pinnacles.

Do you specialize or generalize?

I’m still trying to decide what I should do. Maybe you can help me, do you specialize or generalize? Have you been through this process? What are your experiences?

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