Riches are in the niches
One of our companies Blinksale is in a crowded space and too horizontal.
Customers range from film producers to plumbers.
We decided to niche down and own one space to grow faster.
Here was our process:
Background:
We bought Blinksale about 2 years ago.
It is up about 50% and has been a great cash cow for us. Super stable and requires very little customer support.
But we want to grow it faster.
The broad invoicing space is too crowded.
We need to niche down.
Existing Customers
I went through our top 200 existing customers to look for patterns.
Who gets the most value out of the service? Who uses our product the most?
I sorted them into groups.
Range of Customers
We have at least a few of a lot of different trades:
The most interesting customer provides internet for yachts.
We want to niche it down to be business management for X:
- pest control
- lawn care
- designers
- all trades
- plumbers
- flooring
- lawyers
- movers
- HVAC
Bad Markets
Designers - We have the most designers and small agencies, but we don't want to focus on them. Crowded market and we are missing some key features the better customers need.
Lawyers - set in their ways with specific requirements. Miserable customers to have too.
All Trades
My initial inclination was all trades.
Broad enough to be a significant market. Focused enough to have a set of common problems to be solved.
But then we don't have one ideal customer to market to and build for.
I want to be the best offering for one thing.
Winner - Landscaping (Green Industry)
- Already have customers in the niche. Our product serves them well.
- Big & fragmented market without a clear leader like ServiceTitan in HVAC
- Complicated estimates & invoices
- Recurring revenue makes for stickier customers
Next Steps:
- Update Webflow marketing site
- Work closely with existing customers in space to better understand their use case and new features that would be helpful
- Cold outbound to more ideal customers
- Pump out articles in niche for SEO
TLDR on Niching Down:
- Riches in the niches
- Look at best current customers
- Narrow in on one ideal customer
- Build your pilot group of customers
- Reach out to more in your target market