A service vertical involves a narrow market whose specific needs make them especially likely to want your offerings. Having a vertical market means targeting a niche that helps your business focus its services and advertising. When you add a service vertical, you may decide to create a business division to market your services and develop a competitive market advantage without significantly modifying your corporate structure. When stepping into a new sector, here’s what you need in place to be successful.
1. Study the Market
Assign employees to roles such as segment marketing manager, solution consultants and account executives. Use your database to leverage sales and customer success teams to gain additional insights into the vertical. Task your team with determining how many existing customers you have in the vertical, the churn rate of customers in that vertical compared to your overall churn, and which factors may contribute to churn. Also, figure out how customers are using your service to determine whether there is a service-market fit. Your goal is to determine the total addressable market and revenue opportunities available for your service.
2. Establish a Business Plan
Define the division’s purpose, goals and mission statement to communicate the direction you want it to take. Clarify which services your division will offer. Involve your sales team in identifying customer personas to map buyer journeys and understand how they interact with touchpoints at each stage. Include who the decisionmakers and influencers are, their demographics and behaviors, and how they differ from personas in your other segments. Set realistic project management goals, including deadlines for completion, implementation costs and budgets. Create a spreadsheet to report actual expenses during your financial planning. Decide which qualifications you want for staff and management.
3. Secure Financing
Find investors and lenders to put up the capital needed to create your division. Think about financing options for buildings, equipment, inventory, production materials and marketing. Research the market before pitching your idea. Study your target market and competition to convince investors and lenders your division will be successful. Create a detailed plan showing exactly where the money will go.
4. Implement Your Service Verticals
Clarify with staff and management how the division’s purpose and long-term goals will be carried out. Give authority to management for the division. Ensure they understand their roles, the division’s business priorities and how they benefit the parent company’s strategic goals. Hold managers accountable for the division’s profits and losses. Arm your sales team with as much knowledge and as many resources as possible to effectively sell in your segment.
Gain Working Capital From a Trusted Lender
Gain the working capital you need from Madison Resources to add a division to your company’s service verticals. As your trusted lender, we provide the funding needed to expand your business and increase profits. Contact us today to learn how we can partner with you.