I talk frequently with small businesses. Many with revenues under $1million. And for many of these owner/operators they wonder how it can make sense to maintain White Space. After all, they say, as a small business isn’t even more important to focus on the primary business? The allure of doing one thing is high, but in the end the best businesses always utilize White Space.
The era of drive-in theatres is almost gone. But many of us remember when every town had one. Did you ever wonder how Drive-ins started? I bet you thought someone in the movie business invented the concept. Or perhaps someone with a traditional theatre. But that would be wrong. In 1933 it was a parts store/gas station owner who wanted to increase his night business that opened the first drive-in theatre. He started by experimenting with a projector and a sheet between trees. He launched what became an entirely new theatre concept, and it became a lot bigger than his gas station. (For more on the history go here.)
Businesses of all ages and sizes need White Space. It’s in this part of the business where anything goes, not encumbered by Lock-in, that we are the most creative and capable of trying new ideas. None of us know what will lead to the Rapids, and fast, profitable growth. Even though lots of small businesses think they know what they should do, until they hit the Rapids and grow at double digits they are still in the Wellspring. And the Wellspring breeds the highest number of business failures – usually because enterpreneurs Lock-in before they hit the Rapids and they don’t know what will grow. Maybe you think you’re in the gas station business, only to learn your night movies are worth more than parts selling. Only the marketplace will determine if you’re in the Rapids.
Domino’s thought it was in the pizza business. For 20 years Domino’s did not grow, nor did it make any money. But when the founder realized he was in the prepared food delivery business, rather than the pizza business, he hit the Rapids and became a billionaire in just a decade. No business is too small to benefit from White Space – and avoid the traps Lock-in lays to thwart growth.