Monday, August 13, 2012

Little markets

The other day I was speaking with the CEO of a company, where I sit on the board of directors. We were reviewing the three key issues, and the resources which he's applying to solve the issues. Interestingly, one of the points he raised was that he would like to hire a senior officer to handle the 'small market' opportunities which the team has decided are worthy to pursue.

'Small market opportunities?' I asked, while raising my eyebrow and voice an octave. 'Yes, small market opportunities', he replied.. He then launched  into a deeper explanation.

As a sub $100mm fast growing company in a rapidly transforming industry, he sees the best shareholder wealth opportunity is around participating in markets as a leader. At our size, that means entering markets while they are small, without large competitors, or for that matter entrenched competition. Today, the company sees 3-4 areas which today are still small but each has the potential to positively explode. We just don't know exactly when, or for that matter if, but if they do, then we will be a market leader in another exciting related market.

Not too dissimilar from the venture business where a portfolio of small bets hopefully leads to a few large winners.

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