Smaller companies must often use a different strategy for business growth in Portland than the largest firms. Research done by McKinsey & Company looked at growth patters across smaller and larger companies. What the data showed was that while larger companies sought growth by extending their portfolios and mergers & acquisitions, smaller players relied primarily on market share gains and revenue growth. As authors Sumit Dora, Sven Smith and Patrick Viguerie noted, it’s no big surprise. But it is a reminder that smaller companies can often find their next area of growth by addressing unmet needs of customers of the big firms, finding niche market opportunities and by offering new services without having to cannibalize their own portfolio of products.
Picking areas where nimbleness and speed count can accelerate the growth of smaller companies when the big guys are too slow to respond. Smaller companies can also implement a new business model that provides value to customers and new revenue streams. The trick for smaller companies of course is to do this in a way that doesn’t stretch them beyond their financial means.