Big/little fish in little/big pond

Big/little fish in little/big pond

Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes

So, I'm reading 'David and Goliath' by Malcolm Gladwell . Not a real estate book, but his stories and books are always about giving us a different perspective to look at certain things. Concepts, Ideas, etc

I didn't know, but David beat Goliath, because he was a slinger and Goliath was working with spear and sword. Which is like someone with a sword not having much of a chance against someone with a gun.

Many successful people prefer to be a big fish in a little pond, rather than a small fish in a big pond.

I realized, that I've never had any interest in being a small fish in a big pond - i.e. I don't like competing. Once there are a number of other people involved, I walk away. No longer fun for me. So, I've always found my own niches, where I didn't have much competition: Major rehab of victorian homes, wholesaling of vacant lots to builders, buying rental property in a neighborhood that most investors don't want to deal with. And apart from real estate, most things I've been involved in, including present and past other businesses, I'm always a big fish in a small pond and I have no or very little competition.

And there are other people, who thrive on competition. Who'd rather be a small fish in the big pond, so that they can build themselves up to becoming a bigger fish. They're really good at working the tried and true concepts and walking the paths that many have forged before them.

Where do you see yourself?

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J ScottPro Member
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Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
12y

The only thing I love more than competing is making money (a bit exaggerated, but you get the point). So, while I love to compete, when it comes to my business, I'm happy to be any sized fish in any sized pond as long as I'm making the most money possible.

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  • Ned CareyPro Member
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    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    12y

    @Michaela G. Malcolm Gladwell could make cardboard interesting. Check out the TED site and his 20 min talk on Spaghetti sauce. I would have never thought spaghetti sauce would be so interesting and have lessons for business.

    I am like you. I don't like competition so I work a niche and often do quirky deals that no one else will tough or even understand how to do.

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    12y

    I did see and read about the spaghetti sauce and also about ketchup (don't remember if that was in the same story or a different one - maybe a different one).

    Hurrah for niches ;-)

  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    12y

    The only thing I love more than competing is making money (a bit exaggerated, but you get the point). So, while I love to compete, when it comes to my business, I'm happy to be any sized fish in any sized pond as long as I'm making the most money possible.

  • Yonkers, NY · Member since 2013 · 1 post · 0 votes
    12y
    Hi, I just finished reading that book. I went on to read MG's other books( The Tipping Point and Blink) but they were not as interesting. I haven't yet started to invest in RE( I was thinking to begin with rental apt's). If you have a min I d like to know your strategy in buying these proprieties( I read Money Makeover by Dave Ramsey and I learned that in RE the money is made at the purchase( buying it 30% bellow market value)). Denis
  • Karen MargraveBusiness Member
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    Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
    12y

    It's all relative. We've been the big fish in the little pond, and we're now the little fish in the big pond, just for the mere fact we live in a much bigger area now. However; it depends on your perception, because even in a highly populated area, there are still smaller niches where you can be the big fish.

    I'm with @J. Scott, it's not the size of the pond, but whether you're making money in it!

    As for David and Goliath, obviously he didn't understand the story!

  • Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
    12y

    @Michaela G.

    Honestly I love being a small fish in a big pond. It has allowed me to get opportunities that no one else is looking for because they assume the big guys made it "disappear". I go after all the "crumbs (niches)" that everyone else passed by.

    For example, our area was CRAZY this summer. Every house had multiple offers sometimes 3 cash buyers competing with each other. This and the increased interest rates caused investing to sour. Well this winter, there has been tons of deals if you know where to look :)

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    12y

    @Elizabeth Colegrove , don't look at the 'big pond' as literal size, but as 'what everyone else is doing'. The more people do the same thing, the bigger that pond.

    'the small pond' is a niche, that a small number of people are dealing with. So, if you're talking about working in niches that the big guys don't want to handle, then you're a 'big fish' in your 'small pond' of that particular niche

  • Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
    12y

    @Michaela G. Gotcha!!

    I will say that my biggest success has been watching what the "big fish" are doing and than doing it better or more efficient.

    I use the mls, I also negotiate heavily and am not afraid to walk away. I buy things that "turn key investors" won't touch but are not awful enough for flippers.

    I honestly am not doing anything different from anyone else other than listening to my real estate agent and being flexible/inflexible depending on the momement.

  • Real Estate Investor · Lincoln, NE · Member since 2013 · 584 posts · 353 votes
    12y

    @Michaela G. I like the big fish/small pond approach, which is to say that a lot of money can be made in niches. I also own an ecommerce company that is a big player in a niche market. It's never going to be a $100M company or get bought by Amazon, but it makes good money in it's space. I'm taking a similar approach to REI.

    A great book on niches is Long Tail by Chris Anderson. It's not an REI book, but a great business book.

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    12y
    Originally posted by Karen Margrave:

    As for David and Goliath, obviously he didn't understand the story

    Why 'obviously'? Maybe the way the story is being told in folklore is with the perspective that bigger is always better? Maybe those who normally tell it just look at the outside, instead of digging a little deeper?

    Ancient armies had 3 kind of warriors: The first was calvary (armed men on horseback or chariots) . The second was infantry (foot soldiers, wearing armor and carrying swords and shields. The third were projectile warriors (archers and slingers) .

    Goliath was infantry, with heavy armor, shield and sword. David was a slinger and used a rock to defeat Goliath. A n experienced slinger can kill or injure a target from up to 200 feet, which is too far for Goliath to engage in any kind of combat with his sword.

    The israeli minister of defense, Moshe Dayan, also wrote an essay on this and he wrote: "David fought Goliath not with the inferior but (on the contrary) with superior weaponry; and his greatness consisted not in his being willing to go into battle against someone far stronger than he was. But in his knowing how to exploit a weapon by which a feeble person could seize the advantage and become stronger."

    And I believe that using a 'weapon' that not everyone else is using, is for me the same as having a niche and knowing how to work it and being a big fish in a small pond.

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