Growth isn't random; it can be planned along five vectors. From your current market, you can target higher-paying clients (upmarket), a larger volume of smaller clients (downmarket), different industries (adjacent), a wider category (broader), or a more focused sub-niche (narrower).
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Unsexy markets like plumbing or law have less competition, higher profit margins, and customers who are more receptive to expertise. This creates an environment for faster growth, akin to driving on an empty road.
Drive significant growth not through a single massive overhaul, but through marginal 10-20% improvements across key levers like qualified opportunities, average contract value, and win rates. These small, achievable gains have a multiplicative effect, compounding into substantial overall revenue growth.
When moving beyond your initial niche, target adjacent verticals. For example, a company serving realtors should target mortgage brokers next, not an unrelated field like lawn maintenance. This strategy maximizes the transfer of product features, market knowledge, and potential word-of-mouth.
When deciding between deepening a vertical, adding adjacent ones, or going horizontal, analyze two key factors: the extent of product modification needed and your ability to market and sell to the new audience. This framework simplifies a complex strategic choice.
The growth role has evolved from a narrow focus on media buying to a strategic function involved in all business expansion, including new markets, sales channels, and product categories. Growth teams offer a critical viewpoint on customer spending and market trends, acting as thought partners for the entire business.
Instead of treating all channels equally, identify which customer segments (e.g., brand advertisers) are best served by which channels (e.g., TV screens). Shifting demand accordingly can unlock massive growth by optimizing the entire portfolio and increasing customer ROI.
Niching down allows you to dominate a small pond with less competition, enabling higher prices and faster learning. Once you're the "biggest guy in a puddle," you use your acquired skills and resources to graduate to a pond, then a lake, and finally the ocean.
Many businesses over-index on marketing to drive growth. However, strategic price increases and achieving operational excellence (improving conversion rates, average tickets) are equally powerful, and often overlooked, levers for increasing revenue.
Instead of diversifying randomly, a more effective strategy is to expand into adjacent verticals. Leverage your existing, happy clients for introductions into these parallel industries. This approach uses your established credibility and relationships as a bridge to new markets, lowering the barrier to entry.
Large enterprise clients are often diversified themselves with multiple departments and divisions. A powerful de-risking strategy is to leverage your existing relationship as a proven vendor to get introductions and sell into these other parts of the organization, effectively diversifying your revenue stream within a single account.