Friday, November 06, 2026

Revenue's up and the bank balance still isn't. Jim Collins's Hedgehog Concept shows SME owners why saying yes to everything is the real margin leak.

Ninety-one percent of U.S. small business owners are planning at least one move to grow their business over the next year. That's the headline from U.S. Bank's 2026 Small Business Owner Perspective Survey, a 20-minute survey of 1,000 U.S. small business owners plus an oversample of 200 Gen Z owners, fielded between 27 February and 17 March 2026.

Here's the part that matters more than the 91 percent: what they're actually planning to do. Sixty percent plan to hire. Fifty-six percent plan to invest more capital in the business. Forty-six percent plan to launch a new product or service.

Read that list again. That's not a strategy. That's three separate bets, each competing for the same cash, the same hours and the same owner, in the same twelve months.

Why Doing a Bit of Everything Isn't a Plan

I understand the instinct. Every one of those moves is a reasonable thing to do with a growing business. Hiring feels responsible. Investing feels prudent. A new product feels exciting. So owners fund a bit of all three, and call that their growth plan.

The enemy here isn't ambition. It's the belief that more initiatives equal more growth. Across the 200+ businesses I've coached one-on-one in 30+ industries, the pattern repeats: the business that tries to hire, invest and launch at once usually ends the year with a half-staffed team, a half-finished product, a half-funded plan, and less cash in the bank than when it started. Not because any one of those ideas was wrong. Because none of them got enough oxygen to actually work.

A strategy isn't a longer list of good ideas. It's the discipline to fund fewer of them, properly.

The Strategy Diamond: A Framework for Choosing, Not Listing

In 2001, strategy professors Donald Hambrick and James Fredrickson published Are You Sure You Have a Strategy? in the Academy of Management Executive. Their argument still holds: most leaders mistake a goal, a budget or a list of initiatives for a strategy. A real strategy, they said, is a set of five integrated choices.

For an SME owner deciding where to put this year's growth dollars, three of those five choices do most of the work.

1. Arenas: where will you actually compete? Not everywhere that looks promising. One market, one customer segment, one category you'll go deep in this year. Every initiative outside that arena waits.

2. Differentiators: how will you win there, specifically? Price, service, speed, relationship, expertise, pick the one your business can genuinely deliver better than the next option your customer is considering, and build this year's initiatives around proving it.

3. Staging: in what order, and how fast? Hiring before you've proven the new product sells is a staging error. Expanding into a new region before your current one is profitable is a staging error. The right moves, done in the wrong order, still cost you the year.

Answer those three before you touch the other initiatives on the survey's wish list, and you'll fund one thing properly instead of three things thinly. It's the same discipline the global brands I worked with at DDB, Ogilvy and Saatchi and Saatchi applied before committing a media budget: choose the arena, then fund it properly.

"Talking with Kevin the first time was so valuable and we were learning so much. Within an hour Kevin had us thinking about our business and our goals in a totally different way. In fact we were supposed to be catching a flight but we decided it was more important that we continued the meeting with Kevin."

— Angus and Cameron, Flatpack Co

The Execution Gap: Why Owners Know This and Still Don't Do It

Most owners I meet don't disagree with any of this. They nod along. Then they go back to funding every initiative anyway. The real obstacle isn't understanding, it's that nobody is making them choose.

Without a coach, a board or a structured planning process sitting across the table, there's no one asking the only question that matters: which one of these are you actually prepared to say no to? Left alone with the decision, most owners default to saying yes to everything, because saying no to a good idea feels like leaving money on the table. It rarely is. It's usually the thing that lets the real opportunity get properly funded.

Three Quick Wins This Week

  • List your current growth initiatives on one page, with the hours and dollars each is actually getting.
  • Circle the one with the clearest differentiator, the one where you can say, specifically, why a customer picks you over the next best option.
  • Defund, delay or drop at least one of the others, on purpose, before the next board or team meeting.

Key Takeaways

  • A growth plan with several initiatives funded equally is a wish list, not a strategy.
  • Hambrick and Fredrickson's Strategy Diamond reduces strategy to five integrated choices; Arenas, Differentiators and Staging are the three an SME owner should answer first.
  • Choosing one arena to compete in this year, before funding the rest, is the single highest-leverage decision in a growth plan.
  • The execution gap on strategy is rarely a knowledge gap, it's the absence of someone forcing the choice.
  • Defunding or delaying at least one current initiative, on purpose, is the fastest way to turn a wish list back into a strategy.

Questions Owners Ask

What is the Strategy Diamond? It is Hambrick and Fredrickson's model of strategy as five connected choices: arenas, vehicles, differentiators, staging and economic logic. This post uses the first three because they decide where an SME's money goes first.

How many growth initiatives should I fund at once? There is no universal number. The test is whether each initiative has enough cash, hours and owner attention to be done properly. If two compete for the same owner and the same cash, choose one for this quarter.

Does a US survey apply to a New Zealand business? The survey describes US owners. The choice logic carries across markets, but check your own numbers, and your own market, before you commit.

This is where Simple-Growth's expertise ends and a specialist begins: if choosing a new arena means a new market entry agreement, a partnership or an acquisition, a qualified commercial lawyer should review the structure before you sign anything, NZ Law Society at lawsociety.org.nz is a good place for NZ owners to start. Knowing that boundary is part of building a properly supported business.

Sources (US survey, fielded 27 February to 17 March 2026, released June 2026): U.S. Bank, Small Business Owner Perspective Survey article; U.S. Bank release on Business Wire; Mind Tools summary of Hambrick and Fredrickson's Strategy Diamond. Published by Simple-Growth. Last updated 7 November 2026.

Ready to stop funding several initiatives thinly and choose the one arena worth funding properly this year?

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