Key Steps to
Win With a New Vertical
Build
Research
Launch
Market
You don’t go to a general practitioner for neurosurgery, a hometown mechanic for transmission repair, or a gas station for fine Asian cuisine. Specific needs are best served by those with unique knowledge and skill in those areas of need. This truth isn’t lost on equipment and technology businesses.
Specialization Matters
In this four-part series, we’ll help you with the steps to research, build, launch, and win with a new vertical. And as with most of your efforts, the more you know going into it, the better you’ll be coming out of it. So, let's start with the research.
What We'll Cover
It’s important to build the right team of people to research and assemble the information. It’s even more important to assemble the right team to analyze it and discuss what the data tells you.
A cross-functional team including sales, finance,
executive management, operations, and service will lead to fruitful 360-degree discussions around the potential opportunity and then position you well for the next step: building the vertical.
Team Learning
LEAF Commercial Capital, Inc., a subsidiary of M&T Bank.
Terms and Conditions: All applications are subject to credit approval. LEAF finances equipment only for business purposes and not for personal, family, or household use.
Stay tuned for the next part coming soon.
In the meantime, contact your LEAF Account Champion to learn more.
LEARN MORE
Finance
Sales
Operations
Researching Potential New Verticals
Too many times equipment sellers jump into verticals or specialties based on a single win or a collection of sales assumptions only to see those efforts stall because their real knowledge of the space is limited. Researching a potential new vertical before jumping into the market can be the difference between struggling and winning. Here are some questions and resources to get you started:
Size of the Vertical Market and Size of the Target Company
Questions to Ask
Resources
1
How big should they be by revenue?
What companies within the vertical are you targeting?
These data resources not only help you scale your vertical market opportunity but also offer contact information of key decision makers to help build out your CRM and sales approach.
Zoominfo, Uplead, seamless.ai, D&B Hoover’s, Lead 411, Lead IQ
The Numbers
According to a recent survey of over 800 sellers, dealers, and manufacturers, more than 400 were working to establish at least one new industry vertical.
Represents 100 respondents
According to a recent survey of over 800 sellers, dealers, and manufacturers, more than 400 were working to establish at least one new industry vertical.
According to a recent survey of over 800 sellers, dealers, and manufacturers, more than 400 were working to establish at least one new industry vertical. But of those 400, just 33 felt they had a good plan in place to build, promote, and succeed in their new specialty.
4%
According to a recent survey of over 800 sellers, dealers, and manufacturers, more than 400 were working to establish at least one new industry vertical. But of those 400, just 33 felt they had a good plan in place to build, promote, and succeed in their new specialty.
Are there any industry developments, trends, or emerging technologies driving new needs for your equipment and solutions?
What is the general demand for your equipment and solutions in the new vertical?
Dig into patterns and trends in capital spending by exploring U.S. Census Data, UCC data from Secretaries of State, or the New York Stern CapEx Survey. You can find more specific outlooks by asset class in a simple Google search. For example, searching “outlook for technology sales” will bring up data from Forrester and Deloitte, among others.
2
Need for Your Equipment
or Technology
How would you measure the competitive forces already entrenched in the vertical?
What is their payment performance on average?
What is the financial outlook for the industry?
Are companies in this vertical creditworthy?
Performing basic due diligence on the financial performance of the industry is a must. The Risk Management Association is the best resource to access this data. Pulled from hundreds of financial institutions evaluating credit daily, their data and analysis offer accurate views of financial performance.
3
Budget, Credit Quality,
and Payment History
Their view of the need and impact your equipment and solutions have on their business
Their outlook for their industry
Their view of competition and what sets your company apart
Your current database of satisfied customers in the industry you are planning to target is the best resource for information. Be sure to tell them what you are exploring and ask them where to discover the best information about the industry.
4
Interview Existing Customers About the Industry
Who are the future leaders of the vertical?
Is the vertical poised for growth?
Any leading investment house or audit firm will have countless reports and outlooks on industry direction, growth trends, and economic headwinds. Fidelity, Deloitte, Schwab, Morgan Stanley, and McKinsey are just a few, but even your deposit bank may have resources you can leverage for this information.
5
Research the Industry’s Future
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Click on each of the numbers to learn more.
Number of employees?
