How Big is Your Farm?

Filed in archive Bootstrapper Tips on June 21, 2009

Seth Godin asked that question recently, as a metaphor.

If you own a lot of acres but just have a few bags of seed, you might be tempted to spread out what you've got and cover as much territory as you can. Farmers tell me that this is wasteful and time consuming. You end up with less yield and more work.

Marketers face the same dilemma.

The metaphor gives you a way to visualize a basic truth about business: the more you spread out your resources, the less you make from them. Why would you set up business in the next county when you have more than you can handle in your own county. The temptation is to say, "Because no one there is doing what I do." It's good to recognize that as an opportunity. The problem is, you have to be prepared to take advantage of an opportunity. You have to have the resources to meet demand in the new market, or customer service declines and your business declines with it.


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