Company of One

"Do you want your business to revolve around your life, or do you want your life to revolve around your business?" – Paul Jarvis challenges traditional growth-focused business models by advocating a deliberate choice for small-scale success.

1. Think Small, Grow Intentionally

Modern business culture often glorifies endless growth, but Company of One argues for focusing on "enough" rather than "more." Many entrepreneurs aim to maximize revenue and expand operations, but this comes at a cost. Scaling often demands more infrastructure, increased complexity, and less personal freedom.

Paul Jarvis suggests setting clear limits on how much is "enough" for your company. For instance, Sean D’Souza deliberately capped his profit at $500,000 annually for his consultancy business Psychotactics. This limit allows him to enjoy three-month vacations and quality family time without being weighed down by endless work.

This redefinition of success challenges traditional capitalist ideals. Companies of one focus on stability, sustainability, and personal fulfillment rather than continuous growth. Growth here is not inherently bad, but it is pursued only when it supports the owner's lifestyle vision instead of overwhelming it.

Examples

• Sean D’Souza sets a $500,000 profit limit to prioritize free time and family over business expansion.
• The author himself limited the growth of his web-design business to keep it manageable and enjoyable.
• Start-ups often forget the "costs of growth," like Starbucks did before dialing back from over-expansion.

2. Not Freelancers, Not Small Businesses: A Different Breed

At first glance, a company of one might seem like freelancing or just a family-run business. However, Jarvis makes it clear there is a distinction. Freelancers trade time for money, earning only while they work. Traditional small businesses, meanwhile, often aim for growth and larger teams.

A company of one bridges these gaps. It creates products or services that can generate ongoing revenue with little continued labor. In this way, it's more sustainable than freelancing but without the scale pressures of a typical business. The key difference is that a company of one is designed to prioritize flexibility and long-term income.

For example, Tom Fishburne transitioned from marketing into cartooning without immediately quitting his job. Over time, he turned a passion into Marketoonist, a profitable company of one where he works only on projects he enjoys, rejecting mass expansion.

Examples

• Freelancers must constantly work to earn, but Jarvis's web designs continued to pay dividends long after finalizing each project.
• Tom Fishburne’s cartoon-focused business Marketoonist prioritized creative fulfillment over scaling.
• Many small businesses aim to grow teams, while companies of one remain consciously compact.

3. Side Gig First, Business Second

Paul Jarvis advises against quitting your day job to start your company of one. Instead, begin with a side gig and allow it to prove its sustainability. This strategy reduces risks and provides financial security while you test market demand for your offerings.

Tom Fishburne’s journey illustrates this approach perfectly. He spent years working in marketing and cartooning in his free time. Only when his client base grew organically and his savings allowed for a financial cushion did he leave his corporate job. Today, his venture not only pays the bills but allows him the freedom to spend time with family while pursuing his creative passion.

A side gig also gives you time to refine your business idea. You’re able to experiment and make mistakes while still maintaining financial stability. This slow build-up ensures you’re prepared when you finally make the full-time switch.

Examples

• Tom Fishburne transitioned from marketing to a cartoon-based company of one gradually.
• Jarvis himself used web design as a side gig to test profitability before making it his main focus.
• A "runway buffer" of saved funds reduces the risk of entrepreneurial failure.

4. Work Creates Passion, Not Vice Versa

The notion of "follow your passion" is flawed, argues Jarvis. Many passions—like art or sports—aren’t aligned with market demands or skill availability. Instead of chasing dreams, focus on practical skills you already possess or can improve.

For Jarvis, this meant enhancing skills in web design rather than solely pursuing photography or writing. The act of improving and solving problems for clients can itself become fulfilling. Passion often grows as your expertise deepens and your ability to help others increases.

This approach is both realistic and empowering. It allows you to carve out your niche in areas that can produce income, with passion becoming a byproduct of mastery and customer satisfaction.

Examples

• The author didn’t start passionate about web design but grew to love it as he mastered it.
• A study found that most passions (music, art, etc.) lack job opportunities—practicality is key.
• Skill-based businesses like tailor-made Shopify consulting (Kurt Elster) naturally nurture enjoyment.

5. Niche Beats Broad Appeal

Trying to sell to everyone ends up diluting your appeal. Jarvis emphasizes the importance of targeting a specific, small audience. This niche focus lets you specialize in addressing clear needs, building trust and exclusivity.

Kurt Elster exemplifies this by focusing solely on Shopify consulting, raising his revenues significantly. Similarly, when Starbucks branched into too many offerings in the 2000s, it compromised its identity as a high-quality coffee retailer.

When you define a specific audience and cater solely to their needs, you can charge premium prices. A sharply defined market also attracts loyal clients more than generic mass appeal ever could.

Examples

• Kurt Elster boosted sales by specializing in Shopify consulting.
• Starbucks recovered after simplifying its focus and offering fewer products.
• Ugmonk succeeded by aiming at a niche audience for personalized, high-quality t-shirts.

6. Simplicity Amplifies Success

Simplicity in operations, products, and messaging helps companies of one stand out. Casper, the online mattress brand, succeeded partly because it streamlined its product options to only three models, reducing decision fatigue among customers.

Jarvis believes simplicity enhances clarity in offerings and reduces operational complexity for small businesses. Customers buy into clear and easy-to-understand solutions, while businesses stay agile. Staying simple also keeps overhead low and investments manageable as a company begins.

Simplicity is a winning formula for both small businesses and niche-focused companies. It leads to higher profits and allows companies to operate efficiently without overextending their resources.

Examples

• Casper succeeded with minimalist product choices and clear messaging.
• Jeff Sheldon of Ugmonk began with just four t-shirt designs.
• Simplicity keeps costs low, as shown by the author's own lean web design business.

7. Learn Through Relationships

To build a company of one, it’s crucial to connect with your audience personally. Jarvis suggests understanding client needs by offering free consultations or mini-services.

For instance, Jarvis talked to potential clients about their web design challenges, uncovering gaps in competitor offerings. This built relationships while positioning him as an expert. By listening first, you gain insight into real issues and establish trust.

Learning from clients creates value and converts such relationships into paid opportunities later. Strong bonds and helpfulness increase your value beyond money, which is key for successful referrals and repeat work.

Examples

• Offering free consultations helped Jarvis land most of his future clients.
• Alexandra Franzen’s writing career grew as she prioritized personal interactions.
• Connecting authentically creates trust and boosts word-of-mouth marketing.

8. Start Small, Avoid Big Risks

Instead of big investments, start small and establish profitability quickly. Large start-ups risk overspending on products or infrastructure before confirming demand. Companies of one should focus on earning revenue immediately.

Jeff Sheldon financed his first t-shirt run with just $2,000, quickly selling out and using profits for his next run. This iterative approach lets businesses self-sustain organically. Each small success fuels the next.

By avoiding large upfront costs, you maintain flexibility and reduce initial risks. Sudden course corrections are simpler, and you spend more time earning revenue than burning through cash reserves.

Examples

• Ugmonk started with a $2,000 inventory loan.
• Jarvis used cost-effective freelance platforms to reduce expenses early.
• Technology allows entrepreneurs like Tom Fishburne to start without costly IT.

9. Customer Loyalty is Everything

Repeat customers are far more profitable than new customer acquisitions. Companies of one should focus intensely on keeping customers happy. Providing excellent customer service builds loyalty and strong word-of-mouth referrals.

Instead of chasing endless new clients, retaining happy customers benefits long-term profitability. The cost of acquiring new ones is five times higher, while loyal customers typically spend more over time.

A strong relationship with clients ensures they recommend you to others, growing your business without exorbitant marketing costs.

Examples

• 79% of surveyed consumers avoid businesses after poor service experiences.
• Referrals were the key growth driver for Alexandra Franzen’s career.
• A satisfied client is ten times more valuable over their lifetime than one transaction.

Takeaways

1. Begin your company of one as a side project, saving up for a financial runway before going full-time.
2. Focus on simplicity by narrowing your niche and providing solutions tailored to meet specific customer needs.
3. Build strong relationships with your audience early through personal interaction and excellent service to ensure long-term loyalty.