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The Basement
Some truth about investment and growth
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<blockquote data-quote="kristianjohnsen" data-source="post: 5957" data-attributes="member: 441"><p>This was part of an answer in the "big line array investment"-thread currently going on in the Varsity section.</p><p></p><p>I decided to post it here instead.</p><p></p><p></p><p></p><p></p><p>A lateral move can be a good move sometimes. Growth isn' always the appropriate move (Why does everyone need to "grow" anyway, are we this brainwashed by capitalism?). What is it that we wish to grow into? (probably that other, bigger company's market, is what). What about the clients we have now? What's wrong with them? They put us where we are now, remember... Growing to stay small and nimble and just increase the amount of business, rather than the size of the individual gigs, is often a good expansion.</p><p></p><p></p><p>Most smaller providers seem to have this "perpetual self-doubt syndrome" where they always want to expand into the territory of someone else that is bigger (and they feel like are the ones who "define the market"). </p><p>But we should remember that the small/mid market is a lot bigger in sum than the big/giant market.</p><p> </p><p></p><p>Us smaller providers are always being warned about how things get really difficult if we wish to expand into the bigger leagues. Nobody seems to even contemplate that it is equally difficult for bigger rental houses to "expand" downward into the smaller markets. Yes, they have the gear to do it, no sweat, but are they equipped/staffed/organized to make money doing it? Probably not.</p><p></p><p></p><p>As a smaller provider I carefully invest in gear that is good enough to keep me at the top level of the smaller market in terms of quality and reliability, yet not expensive enough to force me into changing markets just to keep things rolling.</p><p></p><p></p><p>Know your market and tailor your product to make money on the clients you have access to. This is what every sucessful conglomerate out there is doing right now: McDonalds aren't serving up gourmet food, and the gourmet places don't have the capacity to provide as many meals as the fast-food people. Both ends of the scale are making good money, with many opportunities inbetween.</p></blockquote><p></p>
[QUOTE="kristianjohnsen, post: 5957, member: 441"] This was part of an answer in the "big line array investment"-thread currently going on in the Varsity section. I decided to post it here instead. A lateral move can be a good move sometimes. Growth isn' always the appropriate move (Why does everyone need to "grow" anyway, are we this brainwashed by capitalism?). What is it that we wish to grow into? (probably that other, bigger company's market, is what). What about the clients we have now? What's wrong with them? They put us where we are now, remember... Growing to stay small and nimble and just increase the amount of business, rather than the size of the individual gigs, is often a good expansion. Most smaller providers seem to have this "perpetual self-doubt syndrome" where they always want to expand into the territory of someone else that is bigger (and they feel like are the ones who "define the market"). But we should remember that the small/mid market is a lot bigger in sum than the big/giant market. Us smaller providers are always being warned about how things get really difficult if we wish to expand into the bigger leagues. Nobody seems to even contemplate that it is equally difficult for bigger rental houses to "expand" downward into the smaller markets. Yes, they have the gear to do it, no sweat, but are they equipped/staffed/organized to make money doing it? Probably not. As a smaller provider I carefully invest in gear that is good enough to keep me at the top level of the smaller market in terms of quality and reliability, yet not expensive enough to force me into changing markets just to keep things rolling. Know your market and tailor your product to make money on the clients you have access to. This is what every sucessful conglomerate out there is doing right now: McDonalds aren't serving up gourmet food, and the gourmet places don't have the capacity to provide as many meals as the fast-food people. Both ends of the scale are making good money, with many opportunities inbetween. [/QUOTE]
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