In this 1.6 minute video I describe how to define your target verticals.
A transcript of the video follows.
One of the biggest challenges as a start-up or an early-stage company you have is being focused, and you just can’t sell to everyone. So, you need to whittle down your market by vertical, by company size, by location. Verticals can be defined by NEIC codes, and you’ll be pretty nimble. You’ll change these as you have success or not and grow.
Size of the company, very important, so you’ve got to really think hard as a start-up if you’re going to sell to GE because you’ve got to think through what the sales process is with a Fortune 100 company, and the individual you’re selling to in the organization. You need to be realistic about this. I hear a lot of people telling me they sell to the C-level. We’d all love to be selling to the C-level, but I rarely have the C-level answer my calls. It’s much more realistic to start at a level where you can make an operational difference.
The other thing I’d say is when you’ve done that, you can then use that information to do a market sizing, understand what your addressable market is and what piece of that market you’ve got. You can do that top-down, so, “Here’s the sales in mining, or shipping or logistics. I think I can get this piece of it”, and bottoms-up. You can actually estimate the number of companies and size and whatever. You can get this data from the Census Bureau and the Bureau of Labor Statistics.