A $100 million company can grow faster by entering a new market than by pushing harder in its current one. The trick is a beachhead strategy: solve a problem no competitor has touched yet to build credibility before scaling.
We determined that the market in which they were currently playing was not saturated, but the return on further investment and time and energy could be better served by a new market. Now, a new market doesn't necessarily know who you are or why you exist. And so you're absolutely right. The risk of going to a new market whether it's a new geographic market or a new vertical market, in this case it was a new vertical market, is really high because you're an unknown entity or partially unknown entity, particularly if you're not a billion-dollar company but more of a $100 million company. And so the beachhead strategy is really effective in getting known in the market, and the most effective beachhead is to solve a problem that hasn't been solved.
How Can You Maximize Your Business Value Before Selling? with Randy Katz Video
