I wrote this last year for Shawn Murphy’s Wake Up & Shake It Up series. The article is now part of an e-book from Achieved Strategies.

Here’s what it takes to create a business of value:

Think big; act small.

This is the best business strategy that I know. Sound easy? I’m sure it does. But nothing could be further from the truth.

Thinking big means aiming high. It means making a decision about what you believe in and what you will relentlessly pursue. Big thinkers understand that they must constantly innovate, not just because they think they can change the world (which they often do), but also because if they don’t the world will change them.

But thinking big is only part of the equation – the key to the solution is to act small. The alternative (acting big) is a recipe for disaster, and every year companies of all sizes make this mistake and ultimately fail (big).

The difference between big and small:

• Acting big means trying to be all things to all people; acting small means you stand for something and dominate a niche.
• Acting big means ignoring customers; acting small means that you are always close to the customer, regardless of your level in the organization.
• Acting big means that senior executives generate ideas without input from anyone else; companies that act small execute grassroots ideas from employees.
• Acting big means that you advertise as much as possible; acting small means finding alternative ways to connect like-minded customers to one another.
• Acting big means making decisions based upon ego and perception; acting small means you make decisions solely based upon what is best for the performance of the company.

Companies that think big and act small are hungry and have an insatiable desire to perform. It’s incredibly difficult to maintain this state of mind, which might explain why it’s so uncommon.

Then again, great leadership isn’t very common either. The same goes for great success.

It’s not a coincidence.

My son’s first baseball game was more exciting than expected. After spending the first four innings watching a back-and-forth struggle, one of his favorite players hit a grand slam – the giant home run that changes the outcome of a game.

Not surprisingly, the media coverage that evening focused almost exclusively on this particular moment in the game. Apparently, the little things that occurred earlier in the contest weren’t as fun to talk about.

But sports teams that rely on the home run cannot win over the long term. Neither can entrepreneurs and business owners.

That sure hasn’t stopped them from trying. Companies love to develop business plans that are little more than a series of attempted home runs. And while occasionally someone hits one, this approach doesn’t lead to sustainable growth.

A better strategy is to concentrate on hitting singles. It may be less exciting, but think about it this way: if you try for home runs and miss, you’ve accomplished nothing. Modest wins, on the other hand, mean that you’re always growing. And over time, steady growth will transform even the smallest of firms into a powerhouse.

Which is a lot better than the occasional big inning.

Shawn (@shawmu on Twitter) just launched the Wake Up and Shake It Up blog series. Need a push to think bigger than you have before? Here it is.

The first post, Big versus Small, went live this morning. I think you know the author – check it out.

A company’s story can’t be about convenience, low-cost, premium-value, and great selection.

A politician can’t talk about lowering taxes, increasing services, attacking bureaucracy, and reducing the deficit.

A Little League coach can’t preach health and fitness to his team and then sneak a cigarette while the kids are running laps.

I realize that it’s hard to take a stand, to tell people what they don’t want to hear. But it does no good to change your story to suit your audience. Sooner or later people will figure out that you don’t stand for anything at all, which means you’ll be gone tomorrow.

The second problem is that they solve the wrong problems.

More often than not, companies focus their energy on improving the current situation. This is a natural response. And if things seem to get better as a result of their actions, they feel as though something has been accomplished.

Unfortunately, doing what you’ve done before – only better – doesn’t necessarily solve the problem. At best, it keeps you on par with your competition. But it certainly won’t do anything to help you grow.

A better route is to solve a different problem. ING Direct solves a different problem than Wells Fargo. Freshbooks solves a different problem than QuickBooks, Word, or Excel. Zipcar solves a different problem than Hertz.

Solving a different problem often leads to an industry revolution. What problem are you solving?

Most people, of course, thought that the answer was five.

Lincoln always replied that the answer was four, not five, because calling a tail a leg doesn’t make it a leg.

You can’t solve a problem by simply changing a word or a name.

I was impressed with the speed of his decision. “Why wait?” he said. “I’d rather do work that matters.”

He looked at me. “You can do the same thing.”

I knew what he was about to say.

“You don’t have to settle.”

He was right. And I didn’t. But far too many of us do. We decide to accept careers, projects, companies, and relationships that are “good enough.”

How do you avoid settling? Simple. It’s a choice.

Like most entrepreneurs, I believe in thinking big. But there is a difference between a naïve entrepreneur and one that is relentlessly positive for the right reasons. Positive has a well-thought out plan. Positive knows when to tweak that plan in order to deal with inevitable setbacks. Positive balances wishful thinking with reality. 

Naïve doesn’t. Naïve uses optimism to mask reality. And optimism is not enough to achieve the impossible.   

If you’re a goal-oriented person and regularly push your limits, no doubt that you regularly run into obstacles. When you do, make sure that you know the difference between Naïve and Positive. 

One often leads to very unexpected outcomes.

Brad Pitt, on the other hand, looks like a leading man. Every budding star wants to be just like him. That way they’ll get the parts written for Brad Pitt. Very few come to Hollywood looking for Paul Giamatti roles.

Actors are reluctant to pursue a niche.

This sounds a lot like any other business. While many companies go after the Brad Pitt markets, smart firms chase the niche. Here’s the thing – with so many pursuing the obvious markets, there are a lot more opportunities for others to dominate the less obvious ones.

I’d bet on Paul Giamatti every single time.

That’s ridiculous. 

Great success stories usually begin with “no one thought it would work.” They never start with “they copied something that’s been done before.” If that were true, weekend karaoke singers who could carry a tune would make it big.       

It’s not enough to imitate what’s already been done. Not anymore. The world changes too fast for that to work.   

Why then, do so many people push old ideas and tactics that are largely ineffective? They’re familiar with them. And the more familiar you are with something, the less risky it seems.  

It doesn’t matter if you’re writing a book or building a sales team – you shouldn’t strive to do it the same way it’s been done before. Which means you’ll need to stay away from publishers that are looking for the next Harry Potter. Or you’ll have to persuade your manager that direct mail, cold calling, and banner ads will not lead to meaningful sales growth. 

Looking for foolproof? Don’t bother. The best path to success is to create your own.