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Growth: Predict and Penetrate


The new economy post this recession has already shown that customers have changed their views on what is “value”. All customers whether they are businesses or individuals want to lower their total costs without losing out. This means they will trade off lower costs for less specification provided that the changed specification meets their core demands, or they will accept greater specification if it reduces their costs or increases their revenues elsewhere.

The trick for SMEs is to predict how this change in “value” can be made to benefit your business versus your competitors. Predicting the changing needs of customers is critical to success for us all. However we often look for the golden bullet, the one big opportunity that will transform our businesses. In reality this is hardly ever found. Most success comes from finding fast growing niches and exploiting them quickly before others get in on the act. This will increasingly be the case in the new economy. These niches are in effect micro markets: markets that can be developed and exploited in the short and medium term.

Customers expect mass customisation by their suppliers of products and services to meet their specific needs. They are not prepared to pay for things that give no value, even when they come “free” with a package. More and more, micro markets are emerging that offer tremendous growth from a small base. This is no surprise. It follows directly from highly competitive and price sensitive markets where new initiatives and the explosion in technology that allows personalisation at the press of a key. These micro market products & services provide differential advantages that are highly valued by customers – not just because they are different but because they add value.

Historically SMEs are much better at predicting and responding to new micro markets. Put simply they are on the right scale to see and exploit them. Driving business growth through targeting emerging micro markets should be one of a number of growth options you should use.
They key for all SMEs is to make sure you have the insight and data to help you predict accurately new opportunities and how best to exploit them. Exploitation is critical if you are going to maximise your returns, not just on the micro market itself, but also on the opportunity to sell the developing business to larger companies that look to grow through acquisition of emerging businesses. It is no surprise that a lot of angel and VC investment assumes a trade sale of the emerging business within 3-5 years. It s a recognition by larger companies that predicting micro markets and penetrating them early is often best done by SMEs that are faster and better placed. If you need help in identifying and exploiting micro markets call Carr-Michael on 07768 153609 or drop us an email:

A word of warning: make sure that when you pursue micro markets that you have set up your company properly to take advantage of the sales opportunity and to allow you to sell it off easily, if you decide to do so.