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Glad you liked my title. As I was writing the article, I realized how much IT and getting into a Vegas show had in common. Of course, the pay is a bit different...
As I was writing the article, I realized how much IT and getting into a Vegas show had in common. Of course, the pay is a bit different... 
I agree with the niche approach and have done it for 16+ years successfully. One of the big things I've learned the hard way is you have to have multiple niche's in different verticals.
I.E. I work for Law firms as well, but right now, lawyers are one of the most beat up areas in the recession. Many are going under and have had to cut staff, budgets and hiring.
I used to be 90% in non-profits, but the previous recession in the savings and loan scandal years taught me what happens when you only have a single dominant niche.
I.E. I work for Law firms as well, but right now, lawyers are one of the most beat up areas in the recession. Many are going under and have had to cut staff, budgets and hiring.
I used to be 90% in non-profits, but the previous recession in the savings and loan scandal years taught me what happens when you only have a single dominant niche.
Glad you liked my article. For my law firm clients, I've seen the recession have varying effects, mainly due to the type of law they practice. Bankruptcy/foreclosure firms are struggling to keep up with the pace of work, personal injury and intellectual property firms have seen some slowdown, and overall, everyone's been a bit more budget-conscious.
However, if you can spread your expertise around in multiple industries/verticals, you'll have even more financial security. Targeting highly-profitable verticals is a good strategy. I've worked with non-profits before, and they're always scrambling for funds--regardless of the economy.
However, if you can spread your expertise around in multiple industries/verticals, you'll have even more financial security. Targeting highly-profitable verticals is a good strategy. I've worked with non-profits before, and they're always scrambling for funds--regardless of the economy.
occasionally it DOES sound like vanBeethoven (the 5th symphony!). Unfortunately for my Vegas aspirations, however, she's self-taught....
I did read the article, and it's still a killer title.
However, I can summarize in just a few words:
Specialization in IT brings bigger rewards.
There!!
However, I can summarize in just a few words:
Specialization in IT brings bigger rewards.
There!!
Glad you liked my article--and my headline.
You're absolutely right: specialization in IT does bring bigger rewards, and I think that's true whether or not you're doing independent consulting. That said, knowing how to specialize and how to target specialized markets for your skills/expertise can be a trickier question. Using some basic criteria will make it easier to decide whether a particular niche is worthwhile to pursue.
You're absolutely right: specialization in IT does bring bigger rewards, and I think that's true whether or not you're doing independent consulting. That said, knowing how to specialize and how to target specialized markets for your skills/expertise can be a trickier question. Using some basic criteria will make it easier to decide whether a particular niche is worthwhile to pursue.
I do not want to compete with zillions of people with access to freely available tools. Finding a good niche that is rewarding, in every sense, is tricky. Getting into it is even trickier. Maintaining a good network of colleagues and friends may give you an edge here. The "who you know" is significant in this context.
I have rarely found learning new software a problem. It is developing a good process and being aware of the gotchas that is a major key. That is where your network can really give you an edge.
Every so often something comes along that is really hard to crack, having someone to run through it with you really helps. I always document my findings once I/we have solved a problem. That is where you need to go the extra mile for others too. Helping others will always reward you. I would almost call it a law of life. Your document may be all they need. Some months later, it is all you will need.
I think the article was timely.
Thanks,
Phil
I have rarely found learning new software a problem. It is developing a good process and being aware of the gotchas that is a major key. That is where your network can really give you an edge.
Every so often something comes along that is really hard to crack, having someone to run through it with you really helps. I always document my findings once I/we have solved a problem. That is where you need to go the extra mile for others too. Helping others will always reward you. I would almost call it a law of life. Your document may be all they need. Some months later, it is all you will need.
I think the article was timely.
Thanks,
Phil
Greg - your point about specialization is indeed true, providing your time window is a narrow one and your area of specialty has sufficient headroom to support you and your competitors.
Generally over time if the specialty has enough draw, the market will produce competitors (barriers to entry aside) which will potentially erode your market share and revenue. And in the technology game, today's hot specialty - be it application, development platform, OS, etc. is tomorrow's orphaned investment. Which means that sooner or later, the thing you originally specialized in will no longer provide you with revenue opportunities.
So while I agree with your basic premise, I would also add that 2 specialties (one new and one old) are the minimum you should invest time, money and energy into, if you are intending to make independent contracting your way of life.
Generally over time if the specialty has enough draw, the market will produce competitors (barriers to entry aside) which will potentially erode your market share and revenue. And in the technology game, today's hot specialty - be it application, development platform, OS, etc. is tomorrow's orphaned investment. Which means that sooner or later, the thing you originally specialized in will no longer provide you with revenue opportunities.
So while I agree with your basic premise, I would also add that 2 specialties (one new and one old) are the minimum you should invest time, money and energy into, if you are intending to make independent contracting your way of life.
You're right that--especially in the tech field--things move fast, and you need to be ready to shift to and/or develop new specialties. However, I've found that when a company invests a huge chunk of cash to implement a system, there's a vested interest in wringing out as much value for as long as possible. Because of that, you can stay in a niche longer because the technology churn rate is slower.
Now, if the niche is profitable, like you said, it will attract competitors despite barriers to entry. Even so, you can still maintain your market share and continue to grow your business if you've established yourself in the niche. This may apply more to very small niches, but even in very small niches, there can be good money to be made.
For my particular niche, I've been self-employed in it for over 5 years, and am still growing my client base and business--despite newer competitors entering the space--partially because of my depth of knowledge and partly because I've specialized within my niche (instead of focusing on something general like software implementation, I focus on creating customized automation & reporting).
It depends on the particular niche though, so your points are well-taken.
Now, if the niche is profitable, like you said, it will attract competitors despite barriers to entry. Even so, you can still maintain your market share and continue to grow your business if you've established yourself in the niche. This may apply more to very small niches, but even in very small niches, there can be good money to be made.
For my particular niche, I've been self-employed in it for over 5 years, and am still growing my client base and business--despite newer competitors entering the space--partially because of my depth of knowledge and partly because I've specialized within my niche (instead of focusing on something general like software implementation, I focus on creating customized automation & reporting).
It depends on the particular niche though, so your points are well-taken.
What Greg describes here is exactly the way I've been able to make money as a consultant. People find me online because my resume shows up near the top of search results, and I have never paid a cent for SEO.
It helps to get good "intelligence" about rates and practices in your industry niche. That way you can show clients what a good deal they are getting with you. If you stick to your guns in negotiations you can pull off incredible contracts and still charge less than the big companies.
This is not to say that the process is easy. It mostly comes down to providing a desired service level. If you can provide a personal service to a client directly, that goes a long way. A survey done some years ago showed that the biggest complaint that large firms had about services/consulting firms had nothing to do with rates, but responsiveness. The big consulting firms aren't hungry enough. If a company knows that you will answer the phone and return messages then you can be as good as gold.
It helps to get good "intelligence" about rates and practices in your industry niche. That way you can show clients what a good deal they are getting with you. If you stick to your guns in negotiations you can pull off incredible contracts and still charge less than the big companies.
This is not to say that the process is easy. It mostly comes down to providing a desired service level. If you can provide a personal service to a client directly, that goes a long way. A survey done some years ago showed that the biggest complaint that large firms had about services/consulting firms had nothing to do with rates, but responsiveness. The big consulting firms aren't hungry enough. If a company knows that you will answer the phone and return messages then you can be as good as gold.
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