Friday, November 06, 2026

Scared of a big decision you've sat on for weeks? Porter's Five Forces gives SME owners a five-question test built for strategists, simplified for you.

You've got a spreadsheet with three competitors on it, and you check it every Monday morning — their pricing, their new hires, their latest campaign. Here's the uncomfortable truth: none of those three businesses are the reason your growth has stalled. The business quietly eating your market isn't in your category at all. It's solving your customer's underlying problem in a completely different way, and you've never once opened a spreadsheet on it.

This is the question behind most stalled growth strategies: why isn't my business growing when I'm still beating the competitors I track? The answer, more often than not, is that you're winning a race nobody outside your industry is watching.

The Enemy: Direct-Competitor Tunnel Vision

Every strategic planning session Kevin has sat in over 30 years starts the same way: a list of named competitors, their strengths, their weaknesses, a plan to out-position them. It feels rigorous. It's also almost always looking in the wrong direction. Michael Porter's Five Forces framework — still one of the most cited strategy models in business — puts "threat of substitutes" on equal footing with direct rivalry, and yet most SME strategy sessions spend 90% of their time on rivalry and almost none on substitution. Harvard Business Review's summary of Porter's model is worth fifteen minutes of any owner's time for this reason alone.

Substitution doesn't announce itself with a press release. It shows up as a slow leak: fewer referrals, longer sales cycles, customers who "went a different direction" that you can't quite name. Blockbuster didn't lose to a better video store. Kodak didn't lose to a better film company. The businesses that blindside SMEs are almost never wearing the uniform they expect.

The Framework: The Adjacent Threat Scan

Kevin runs every coaching client through a simple quarterly exercise called the Adjacent Threat Scan. It takes ninety minutes and it consistently surfaces the risk — and the opportunity — that the competitor spreadsheet never catches.

1. Map the job, not the category. Write down the actual job your customer is hiring you to do — not "we sell X," but the underlying outcome they want. Then list every other way that job could plausibly get done, including ways that didn't exist five years ago.

2. Track the adjacent movers. Identify three businesses outside your category that are growing fast and touching your customer's world in some way — a new platform, a new supplier model, a new DIY option. Ask what happens to your revenue if any one of them decides your customer is next.

3. Run the "skip us entirely" test. For your next ten lost or stalled deals, ask not "who did they choose instead" but "did they solve the problem without hiring anyone like us at all." That answer tells you more about your real competitive position than any rival's pricing page.

This is the same discipline that sits underneath the Simple-Growth System™: strategy built on where the market is actually moving, not where the org chart of "known competitors" says it's moving.

"Kevin D'Ambros-Smith presented on the Icehouse Owner Manager Programme and he was brilliant… it was the most notes I have ever taken from any speaker."

— Steve Holloway, Founder, Between Two Beers Podcast (Winner, Best Business Podcast, NZ Podcast Awards)

The Execution Gap

Most owners, if you asked them, would agree this is true in principle. Almost none of them run the scan. Not because it's hard — because it requires stepping outside the day-to-day long enough to see the shape of your own industry from the outside, and that is precisely the vantage point a founder buried in operations doesn't have. This is the real value of an outside strategic partner: not motivation, not templates, but a second set of eyes that isn't inside your industry's assumptions.

Key Takeaways

  • Track the job your customer is hiring you to do, not just the businesses that look like yours.
  • Run a quarterly Adjacent Threat Scan across three fast-growing businesses outside your category.
  • Ask "did they skip hiring anyone like us" on every stalled deal — it reveals substitution risk your competitor list never will.
  • Bring in outside perspective specifically to escape your own industry's blind spots, not just to hold you accountable.

If your strategy sessions are still built entirely around the three competitors you already know, you're planning for last year's threat.

...and you become the owner who sees the threat to your growth before it shows up in your sales.

Saturday, October 31, 2026

63% of US small businesses say word of mouth is key to new customers. Here's how to build that into a system that still works when you're not personally chasing it.

Saturday, October 31, 2026

68% of US owners have delayed a major decision purely from fear of getting it wrong. Here's the 15-minute premortem test that gets you unstuck before you spend another dollar on it.

Friday, October 30, 2026

UK SME owners now spend almost twice as long on admin as on growth, per a fresh 2026 survey. Here's the three-step Weekly Execution Audit Kevin uses to help owners flip that ratio.

Friday, October 30, 2026

Only 30% of US owners finished 2025 with profits above expectations, down from 57% the year before. Here's the real reason growing revenue stopped meaning growing margin.

Friday, October 30, 2026

43% of US owners have hidden business stress from their own family. Here's why carrying it alone is the actual problem, and why Kevin hired his own coach.

Friday, October 30, 2026

If your business stops the moment you do, the problem isn't your team. It's how many of their problems you're still quietly carrying. Here's the fix, from a 1974 HBR classic.

Friday, October 30, 2026

One client had 123 customers. Eight of them delivered 42% of total revenue. Here's the A-B-C-D grading system that tells you which customers actually matter.

Friday, October 30, 2026

Nearly three in ten US owners name unpredictable demand as a top stressor. Here's the always-on marketing system (RACE) that replaces the feast-and-famine cycle.

Friday, October 30, 2026

If a prospect asked what makes you different, could you answer in one sentence? Here's the three-question positioning map that gets you there before your next pitch.

Thursday, October 29, 2026

Most sales die at silence, not at no. Here is how to build a first AI agent for sales follow-up in five steps, with a human in charge and NZ privacy and spam rules covered.

Thursday, October 29, 2026

AI speeds up whatever you point it at. Here is how to match it to the one link in your business that is actually limiting growth, before you spend on tools.

Thursday, October 29, 2026

36% of NZ SMEs use AI, but the smallest firms trail by 34 points. Here is a four-question test for choosing your first AI job, and a 30-day plan.

Thursday, October 29, 2026

Nearly half of SME owners say their business doesn't have a money problem — it has a time problem. Here's the 90-day Freedom Plan to fix it.

Thursday, October 29, 2026

A business with four equal customers loses 25% of revenue the day one leaves. Here's the customer-concentration math most SME owners never run, and three moves to fix it.

Thursday, October 29, 2026

A lot of owners try the wrong format, see no shift, and decide coaching doesn't work for them. Here's what a peer room is actually good for, what 1:1 coaching is actually good for, and a 3-check way to pick.