The Prime Growth Framework for Small Business Suppliers

The Prime Growth Framework for Suppliers combines a powerful new perspective on the small business sector with bi-weekly datasets, enabling your team to quickly identify & segment new & high growth small businesses, then effectively engage with value propositions that align to their current growth priorities.
 
Through a proprietary combination of machine analysis and human analytics, we use Prime Growth Classification to continually identify current new (pre-opening) & high growth (expansion stage) firms throughout the US, and group them into five segments based on their current growth priorities.
 

Overview

1. Prime Growth Classification
2. The Prime Growth Briefing
3. Value Proposition Alignment
6. Deliverables
7. Pilot process

Prime Growth Classification

At the core of the framework is Prime Growth Classification, a growth-based classification standard for the small business sector developed by SMB Intelligence in 2018.
 
Growth-based classification uses development stage, growth format and growth scale to categorize firms rather than traditional small business segmentation. The purpose of the standard is to identify current prime growth firms and segment them by their current growth priorities.
 
Prime growth firms are independents or small chains, that are employers, with a commercial location(s), currently at a seed (new, pre-opening) or expansion (planning to add locations) development stage.
 
Growth priorities are the big picture context of an owner’s current growth plans – the format and scale of growth they are currently working to accomplish.
 

Why this matters

Most small business owners are not motivated by growth¹ and the vast majority are not receptive to new solutions².
 
Prime growth firms are the small businesses most likely to be motivated³ and receptive⁴. When you can identify prime growth firms and determine their current growth priorities, you can more effectively deliver relevant, timely and highly targeted value propositions, to the small businesses most likely to be receptive to them.
 
Traditional small business segmentation does not provide the ability to identify prime growth firms or their growth priorities, as the key indicators are current development stage, growth format, and growth scale⁵.
 
Learn more about Prime Growth Classification
 

1. Only 24% of owners report wanting their firm to be “as large as possible”, and more than 50% of owners cite lifestyle benefits such as “flexibility over schedule” or “be my own boss” as a primary reason for starting their firm. Pugsley, Benjamin Wild and Erik Hurst. “What Do Small Businesses Do?”, Brookings Papers On Economic Activity, Fall 2011. Available online. Only 33% of owners say their primary goal is to grow. The Hartford. “2015 Small Business Success Study”, 2015. Available online. 2. Waters, Steve. “Why The Vast Majority of Small Businesses Are Not Receptive to New Solutions”, SMB Intelligence, May 2018. Available online.. 3. Waters, Steve. “Most Small Business Owners are Motivated by Lifestyle – Not Growth”, SMB Intelligence, May 2018. Available online. 4. Waters, Steve. “Identifying the Small Businesses Most Receptive to New Solutions”, SMB Intelligence, May 2018. Available online. 5.Waters, Steve. “Growth-based Classification vs. Traditional Small Business Segmentation”, SMB Intelligence, May 2018. Available online.

The Prime Growth Briefing

Published every two weeks in CSV format, The Prime Growth Briefing is a powerful dataset that identifies current prime growth small businesses in retail, services, healthcare, restaurant / hospitality, groups them into seven segments based on their current growth priorities, and provides deep insight into their current status.
 
SMB Intelligence uses proprietary open-source intelligence (OSINT) methods applied through a combination of machine analysis and human analytics.
We continually monitor over 30,000 real estate, editorial, public government data, social media and other sources to track planned growth activity in the small business sector.
 

Why this matters

Which firms are currently considered prime growth continually changes, as the sector churns with new firms entering, failed firms exiting and surviving firms moving through development stages.
 
Traditional small business datasets and segmentation does not provide insight into prime growth firms, growth priorities, or growth timing⁶.
 

Number of firms identified

The quantity of prime growth firms / establishments identified averages 15,000 annually. Monthly volume varies with sector conditions / activity.
 

Data Validation

Published every two weeks, the Prime Growth Briefing is the most current and accurate small business dataset available. We take extensive steps to ensure the veracity of the data we provide, and to present it to clients in a transparent manner. We use both internal and third-party validation tools, and all contact information is accompanied by validation status.
 
View the data points included in the Briefing.

6.Waters, Steve. “Growth-based Classification vs. Traditional Small Business Segmentation”, SMB Intelligence, May 2018. Available online.

Value alignment

The Prime Growth Briefing groups prime growth firms into seven segments based on their current growth priorities. Growth priorities refer to the big picture context of an owner’s current growth plans – the format and scale of growth they are currently working to accomplish.
 
This insight enables your team to align the value of your solutions to best support the current growth priorities of owners in each segment, making your value proposition more relevant, timely and compelling.
 
 

The Segments

 
1. Seed-NewFirm – a new owner currently planning to open a single location business.
2. Seed-Encore – an owner with previous entrepreneurial experience currently planning to open a single location business.
3. Expansion-Initial – a single location business currently planning to expand by opening a second location
4. Expansion-Emerge – a small emerging chain with 3-10 locations currently planning to add a location
5. Expansion-Advance – small advanced chain with 10-19 locations currently planning to add a location
6. Expansion-Velocity – small chain that is currently planning to add multiple locations at once
7. Expansion-Relocation – a small business that is planning to expand by relocating
 

Why this matters

Owners live in the moment⁷ and want solutions to current priorities, not generalized value⁸.
 

Datasets

The Prime Growth Briefing
The Briefing is published every two weeks and delivered in CSV format via email.
View the data points.
 

Consulting

Value alignment
Upon request we can review your value proposition and messaging to ensure they support the growth priorities of each segment. Consulting is delivered via email & phone.