Tuesday, June 23, 2009

Milli Market Segments for Local Food

Although Eric Sink, managing partner of Champaign, Illinois Source Gear LLC, writes about the software business, his article "Whining by a Barrel of Rocks" applies to ways of thinking about the structure of food "as a business" and the many opportunities for collaboration and economic growth with both large "production agriculture" firms and more narrowly focused specialty/local/boutique businesses.

Mr. Sink writes:

"Now let's suppose we're considering a market opportunity with realistic potential for $3M USD annual revenue. The big vendors can't even consider pursuing a market that small. It's not worth their time. But a $3M annual revenue stream will easily sustain a small company of 15-30 employees. That niche is an opportunity, and somebody is going to build a nice company inside it.

Identifying all the opportunities for software products is like filling a barrel with rocks.

We start by putting in the really big rocks like office suites and desktop operating systems. Soon the barrel is full and will hold no more large rocks.

But smaller rocks can still be added easily. In fact, we have to add a surprising number of small rocks and pebbles before the barrel can be considered full."

More at http://www.ericsink.com/bos/Whining_by_a_Barrel_of_Ro.html

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