Market Analysis Blindspots

Sarah Moore shares her experience buying and growing a business, revealing that market analysis and industry frameworks can be misleading. She discovered the true potential of her business only after operating it, finding opportunities that weren't apparent during initial research.

Key Points:

• Initial Market Analysis vs Reality:

  • Started thinking she was in the egg industry
  • Actually discovered she was in specialty packaging
  • Market frameworks and analysis proved largely irrelevant once operating

• True Business Opportunity:

  • 40% of revenue now comes from non-egg related products
  • Products used for crickets, dubai roaches, small parts, bath bombs, cupcakes
  • Core business is "protection and separation" - not just egg cartons

• Market Research Limitations:

  • You don't really know until you're in it
  • Industry frameworks are "a bunch of crap"
  • Real opportunities reveal themselves through operation

• Business Evolution:

  • Focus shifted to proprietary products
  • Developed "sticky" products with custom molds
  • Expanded market definition beyond initial narrow focus

• Growth Strategy:

  • Recognized broader market potential
  • Leveraged COVID as opportunity to scale (5-6x growth)
  • Focused on capabilities rather than industry definition

• Key Learning:

  • Don't limit yourself to industry definitions
  • Look for broader applications of core competencies
  • Be open to discovering new markets after acquisition