Extreme focus: not just a trend but a key to success

Is extreme focus the key to success for entrepreneurs? Two recent articles in Het Financieele Dagblad show how companies that consciously choose a limited scope achieve impressive results. By doing less, you can ultimately achieve more. But what does this mean concretely for you as an entrepreneur?

The Vorwerk Group is a textbook example of how focus can lead to success. This German family-owned company has chosen to focus on just two product categories: kitchen appliances and vacuum cleaners. By not wasting energy on dozens of variants, they emphasize perfection. The result? Global success with just two products that together generate sales of more than €2.6 billion.

This approach shows that it is not always necessary to offer a wide range of products. Instead, by focusing on one or two things and making them perfect, you can stand out in a crowded market.

TNO's vision: Focus for impact

Tjark Tjin-A-Tsoi, CEO of TNO, stresses the same importance of focus but in a different way. According to him, it is crucial to focus resources on large international markets where you have a “right to play” as an organization. In other words, choose the markets where you can take a strong position and make a real impact.

Marco Coolen © Bart van Overbeeke

For entrepreneurs, this means thinking about what you do and where you do it. Choose your battles carefully and focus your resources on those areas where you can make a difference. This will prevent you from getting lost in markets or products where you are just one of many.

The power of focus for SMEs and start-ups

Extreme focus is not just a strategy for large companies. It can also benefit SMEs and startups immensely. When you are a smaller player competing with multinationals, focus is often your most potent weapon. By choosing a niche and concentrating your resources on it, you can stay one step ahead of larger, less flexible companies.

I often see this in entrepreneurs I work with. Companies focusing sharply on their core competencies often maintain a competitive advantage, even in pressure-filled markets. I saw this pattern in the late 1990s when I worked at Philips. We watched an American startup, with an extreme focus on a niche, outpace us as a multinational. It was so difficult for us to catch up with them that we decided to focus on another market.

Philips itself is also an example of a company that revised its strategy by focusing. They stay relevant in a constantly changing market by making sharp choices in what they do and don't do.

What does this mean for you as an entrepreneur?

Focus forces you to look critically at what you do well. Where do you add the most value? By choosing sharply and doing less, you can use your resources more effectively, offer better product quality, and stand out in a competitive market. It's a strategy that not only helps you stay relevant but also gives you an edge over larger, less flexible players.

So extreme focus is not just a trend but a proven key to success. Dare to choose and discover what it can do for your business.