The power of specialisation: how small businesses are outperforming larger rivals

Rory Vaden's latest research is turning conventional business wisdom on its head, and small business owners need to pay attention. Rory Vaden is a New York Times bestselling author, Hall of Fame keynote speaker, and co-founder of Brand Builders Group, who has carried out extensive research on why businesses succeed. His findings challenge everything we've been told about marketing, audience building, and revenue generation - and the implications for SMEs are significant.

The "depth over width" revolution

Vaden's most powerful insight flies in the face of traditional marketing advice: you don't need millions of followers on social media to make millions of dollars. His research demonstrates that small businesses focusing on serving a smaller audience more deeply consistently outperform those chasing massive reach.

This isn't just feel-good advice - it's backed by what Vaden calls "fractal math." The data shows you don't need more customers to scale; you need to serve your existing clients better and deeper. For a local accounting firm, this means becoming the go-to expert for restaurant owners rather than trying to serve every business type. For a fitness coach, it's about specialising in helping busy parents rather than attempting to appeal to everyone.

The practical application: Identify the person you once were and serve that audience. Your past struggles become your greatest business asset because you understand their pain points intimately.

The trust-first branding strategy

Vaden's research reveals that building trust is more relevant to business success than chasing followers every single time. His analysis of successful personal brands shows that reputation digitisation creates life-changing opportunities, even for local businesses just starting out.

The key isn't slick content or massive budgets - it's adding value through being educational, encouraging, or entertaining. A local plumber sharing quick fix tips on social media builds more trust than expensive advertising campaigns. A bakery owner teaching basic bread-making techniques establishes authority that translates directly into sales.

Why multiple streams kill success

Perhaps Vaden's most controversial finding challenges the "multiple streams of income" mantra that dominates business advice. Instead of diversifying early, his research shows that successful businesses master one thing exceptionally well, then use those resources to invest in additional ventures.

This is revolutionary for small businesses constantly pressured to expand their offerings. A web design agency shouldn't add social media management, copywriting, and SEO services simultaneously. Instead, they should become the absolute best at web design for their specific niche, then strategically add complementary services.

Vaden's data shows that concentration beats diversification in the early stages because it allows you to charge premium prices for specialised expertise rather than competing on price in crowded markets.

The bottom line

Vaden's research emphasises that clear is better than clever every time. The more explanation your business requires, the less effective it becomes. Small businesses often overcomplicate their messaging, trying to serve everyone and ending up connecting with no one.

A successful local business should be able to explain what they do and who they serve in one clear sentence. "We help busy executives maintain their health through 30-minute workouts" is infinitely more powerful than "We provide comprehensive fitness solutions for various lifestyle needs."

Vaden's research fundamentally challenges the "go big or go home" mentality that intimidates many small business owners and SMEs. His findings prove that small organisations can compete effectively by going deep rather than wide, building trust rather than chasing metrics, and concentrating rather than diversifying.

This represents exactly what we advocate for at Fullstack Comms - an integrated approach that prioritises authentic connection over flashy tactics. It's not about having the biggest budget or the most followers; it's about serving your specific audience so well that they become your biggest advocates.

Do this today

1. Define your one-word problem solution

Write down the one problem you solve in one word, then explain how you solve it in one sentence. Vaden's research shows that clear is better than clever every time, and diluted focus leads to diluted results. A web designer might say "confusion" as their one-word problem and "I create websites that turn visitors into customers for service-based businesses" as their solution sentence.

2. Audit your service offerings today

List all your current services or products. Circle the one that generates the most profit per hour of your time. Vaden's research proves that concentration beats diversification - businesses trying to do everything compete on price, while specialists charge premium rates. Stop promoting your other services for the next month and focus all your marketing on becoming known for that one profitable specialty.

3. Create your "before and after" business story

Write down the specific business challenge your company was created to solve, based on a real problem you or your customers faced. Vaden's data shows that businesses with clear origin stories connected to customer pain points build trust faster and convert better. This becomes your elevator pitch, website copy, and social media content foundation - all focused on the transformation you deliver rather than features you offer.