Second in a series with Victor Cheng, a San Francisco based business coach, and author of the Recession Proof Business.

Tom:
In an attempt to scratch out precious points in market share, what changes should companies design into their operating strategies?

Victor:
One pattern I’ve seen in the company’s I’ve worked with is that often the easiest market share gains are made in secondary market segments. Assume a business consists of Product lines A, B, and C or customer segments A, B, or C, where A is the largest revenue producing segment, and C is the smallest one.

In a number of cases, I’ve found the easiest way to grow a business and expand sure is in segment C. This is not to say that one should always look at the smallest segment for the most growth. However, I’ve seen this pattern of the “neglected”, smaller segment can sometimes have a counter-cyclical demand and less competitive aspect to it.

So, don’t just look at the biggest parts of your business. Examine the smaller slices too.

Finally, from an operations standpoint, the big thematic change that needs to be made is the willingness to experiment with growth options. If you’re not deliberately willing to seek out and tolerate many low-risk “failures”, it’s highly unlikely you’ll stumble upon the pockets of demand that always emerge in major structural shifts in demand such as the one we’re experiencing now.

You can download a free e-copy of Victor’s book, The Recession-Proof Business. Our conversation continues tomorrow.