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View Full Version : Local vs National - My Story



Dan Furman
01-09-2009, 03:47 PM
We have an interesting discussion going on in the website forums of local vs national for certain businesses (http://www.small-business-forum.net/design-development/831-dont-rely-too-much-web-site.html) (I say certain businesses, because obviously HuggyTree isn't crossing state lines to unclog a sink, etc....)

Basically, I'm of the opinion that for a business like mine, or a web designer, or a graphics person, or a million others that utilize a computer and data, there's no reason "national" [and beyond] should not be your focus.

So I wanted to discuss the mindset of the local vs. national thing, because I think it really is a mindset. People seem to naturally think "local" first, and many never get beyond that. For instance, there's a web design firm in my area that isn't doing so good, because all they think is "local" (their website even says "we handle all of anytown's web design needs", implying that if you are NOT from anytown, they can't help you.)

Anyway, here's why I'm such a big supporter of national (and beyond):

My last job was as an e-commerce programmer at a big company. EDI in particular, and to get more specific, writing data maps for a particular EDI translator (EDI is how big companies communicate with each other.)

In other words, I had a very tightly focused skillset. And I became very good at it, so good that I was answering questions on an online forum devoted to the complicated software that I used.

One day, I got a call from a consultant in Florida. He was looking for someone to write these data maps for one of his clients, saw my postings, said "this guy knows his stuff" and contacted me. The data mapping was such that I could do it at home (I had installed the mapping software at home when I first got hired so I could practice), and e-mail him the map (which was then plugged in to the translator.) I agreed to do the job.

The next day, I get into an argument with my boss, and get fired (long time coming). Talk about great timing. If I got fired a day earlier, I'd probably be working retail right now, because that consultant changed everything for me.

Anyway, here I am, fired, with a very narrow recent skillset. There was nobody within fifty miles of me who used this software that I was so proficient in. However, I did have that one map to make for the consultant - I did it (took me maybe 20 hours), e-mailed the result (and an invoice), and as if by magic, a check for $1,500 shows up in my mailbox about a week later.

Then the consultant e-mails me... he has a few maps he needs, and also another client who uses the same software... could I make maps for them too?

That did it - that got me thinking.... there may be nobody HERE who uses this software, but there must be hundreds of companies "out there" who do. And dammit, I can reach them.

I put up a little website saying "I make maps for software XYZ", invested in a few PPC ads, and wouldn't you know, I started getting e-mail from interested companies. From all over the world. I was off and running.

Basically, I was forced to think beyond my local area. So naturally, when I finally decided to capitalize on my writing skill, "local" wasn't my focus at all. I shot for the moon right away - in fact, one of my first clients was in the UK.

In a nutshell, and the moral of the story, was that I was conditioned to start thinking "national and beyond", and it totally changed my life.

huggytree
01-09-2009, 05:34 PM
i could go national if i wanted to someday!...i keep pushing the idea of a waterheater only company...buy them by the semi load, set the trucks up just for water heaters, advertise on TV/Radio.....this isnt a original idea, but its not around here yet....the best thing is its recession proof!.

anyways, right now i think its smart for every business to expand their customer base and if you can go national why not? your customer base is unlimited!!!

collecting your money would be a worry for me. small companies could go under before they pay you....credit card is how id do it.

billbenson
01-09-2009, 05:38 PM
Dan, in 90 my boss said "you can either move to latin america or look for a job". It was because of a merger and they had two sales people doing well in the same territory.

That was pretty much pre internet. It was a real eye opener though. It made me very aware of the global economy. It really changes perspectives.

Today, less than 5% of my prospects need someone local.There is a percentage that do need something local, but the number is really small. Buyers are accustomed to buying online when in the 80's and 90's they wanted to be wined and dined.

Obviously there are certainly some industries that require someone local, but with the current economy closing malls and department stores, it will only drive more stuff online. For major projects, people still get on airplanes. I don't see some company in some small town necessarily contracting with someone local, even if a local presence is required.

vangogh
01-09-2009, 06:31 PM
Dan I knew where your story was going after having read your book. I thought it was a great way to get started. My start wasn't quite the same, but the thing the ultimately set me into business was getting laid off when IBM bought the company I was working for. (No ill will toward IBM. They made a competing product).

I have a mix of local and national clients. Other than joining a local chamber of commerce years ago and responding to an ad on Craig's List when I was first starting, I haven't done anything to specifically target local clients. Most of my clients are national.

If you're just starting out in business I do think it makes sense to target your local market for the simple reason that there's less competition. Less market too, but with less competition it can be easier to stand out and get noticed. You do have things like the Chamber to network and while I think networking online, nothing can really replace face-to-face meetings.

So maybe as a web designer my page titles might say Web Design in Boulder Colorado | Van SEO Design, which should help me show up for local searches and perhaps gain search visibility sooner than had I not added the location.

However I would never limit myself to the local market. Unless your job requires you to be in a specific place at a specific time on a consistent basis there's no reason why you can't work beyond your local area.

The U.S. is increasingly turning into a service based economy. Many services can be done from anywhere. Like huggy said even he as a plumber could go national. He personally wouldn't be fixing pipes across state lines, but there's no reason why he couldn't hire out local plumbers in every town across the country.

Like I said local markets are smaller with less competition. The less competition part can help you stand out, particularly in the beginning. And there are some people who do prefer to work with someone local. It's the same reason we want to see a phone number on a website. We'll probably never call, but we like to know we can. Some people like to know they can visit your office or meet you in person even if they never will.

But since the local market is smaller it also limits who can be your customer. Maybe not a problem if your local market is Manhattan or Chicago or Los Angeles, but it's certainly limiting if you live in Baggs Wyoming. (Yes that is a real town. Population is about 350 and I used to work with a girl who was from Baggs)

Now is there anything wrong with focusing solely on your local market? Not at all. If the market is large enough to support your business you can make a decent living. But why limit yourself when you don't have to. If one more business enters your local market it could mean the end of yours. If one more business enters the national market it probably won't affect you at all.

orion_joel
01-09-2009, 10:11 PM
Huggy as long as the market need is there then there is not reason not to do something like this. I know the local area where i live there was an electrician that for probably 5 or 6 years his sole advertising was safety switches, it was plastered all over his tuck, he had ads in the paper every week, and he was flat out. I saw his truck driving around or stopped somewhere almost daily. Probably made a fortune because he was so good at it, he would have been able to do the installation fairly quick.

The problem i see is that now you see him with different things on the side of his truck quite often, Air con install, circuit testing, but nothing for a longer period. So while sticking to one product can work you need to be sure that the demand is really on going. This electricians biggest down fall i believe was that the local laws now require a safety switch installed to all new houses, and because his focus was on selling the product to people who already had a house without a safety switch, that market is continually getting smaller.

KristineS
01-10-2009, 10:20 AM
I think anyone who has a service that doesn't have to be linked to one specific location has to think globally now days. Even brick and mortar stores that have a location in a specific town can have a web site that allows them to reach customers all over the world. Why limit yourself when it comes to customers? With all the technology available today you can communicate with others and exchange ideas and never have to be in the same room or even on the same continent.

Blessed
01-10-2009, 05:12 PM
This is something that is definitely one of my goals for this year - I want to reach out away from simply the local market that I've been working and build my business up - we've had a few bumps in the road here at home that have delayed my plans but they are still there - get my website up, expand my skillset and see what kind of business I can find outside of my corner of the world.

Aaron Hats
01-11-2009, 04:37 PM
We're not just national, we're global. I wouldn't be in business today if it weren't for our web site. More than half our business is now done online. From time to time a customer will walk into the store and they'll be the only customer there. They'll say "slow day, huh?". My response is usually "I wish, I could use a day off.". Then I'll point to a bunch of hats I just pulled for orders and explain how they all need to be shipped out, not to mention all the drop ship orders that need to be processed.

I love the internet...most days. ;)

pete
01-11-2009, 04:59 PM
I'm the same. I actually have a couple of at first glance non-related businesses. I have a hosting business where I concentrate on shopping cart sites for online retailers. Most carts require less than 200MB, so the 10GB sort of accounts are just huge wastes for them.

And I am a dropshipper and factory distributor, send out single or several piece orders for online sellers or shipping them hundreds of units for their own inventory.

Global is definitely the word. My hosting business has about as many .co.uk domains as it does .com. And I've also got clients in Ireland, Canada and Australia, as well as New Zealand.

My dropshipping customers, not even considering where I dropship for them, includes all of the above and most countries in the EU, as well as Israel, Malta and some Eastern European countries.

And, in a great case of "overlap" I host a number shopping carts for my dropship / wholesale business. I don't have any "bundles", no free sites if you buy my goods, etc. They just choose to host with me because I am active on their forums and have a history of trustworthiness and dependability.

I'm about to turn 70 years old this month and I must say that never in my wildest imagination as a kid or young man would I have believed that I would be doing business with, as well as be friends with, so many people all over the world. It's been quite a journey for the from being the first kid on the block with a TV set in the house to becoming a "world trader".