Developing Your Vertical: The Smartest Way to Improve Margins
In today’s competitive market, small and medium-sized businesses can’t always win by lowering prices. The real path to sustainable growth lies in developing your vertical—building depth in your existing market rather than constantly chasing new ones.
Vertical development means identifying opportunities within your current industry, strengthening your expertise, and expanding your service offering to capture more value. The result? Higher margins, stronger relationships, and scalable growth.
What Does “Developing Your Vertical” Mean?
Developing your vertical means growing within your existing industry or client base instead of spreading your resources too thin across multiple markets.
For example:
A construction company adding financing and project management services.
A staffing firm adding payroll and HR consulting.
A retailer launching an exclusive product line for a specific audience.
Each of these examples builds depth, not breadth—and that depth increases profitability.
Why It Improves Margins
1. Efficiency Through Familiarity
You already understand your industry, customers, and operational flow. Adding new services within that same space requires less time, training, and marketing to become profitable.
2. Increased Customer Value
When you can serve more of your clients’ needs, they spend more with you. This drives higher average transaction values and boosts lifetime customer value.
3. Reduced Competition
By going deeper into your niche, you differentiate your business from general competitors. Specialized services are harder to replicate—and clients will pay more for expertise.
4. Improved Resource Utilization
Vertical expansion allows you to leverage your existing systems, staff, and vendor relationships. You’re not starting from scratch—you’re optimizing what already works.
5. Stronger Market Position
Becoming the go-to provider within your niche builds brand authority and pricing power—both of which directly increase your margins.
How to Start Developing Your Vertical
Step 1: Identify Gaps in Your Current Offerings
Talk to clients. What problems are they still solving elsewhere that you could handle?
Step 2: Evaluate Profitability Potential
Not every opportunity is worth pursuing. Focus on those with strong margins and low overlap with your current workload.
Step 3: Build Systems Before Scaling
Before launching, make sure your internal processes, staffing, and financial controls are ready for expansion.
Step 4: Market to Your Existing Audience
The easiest sales you’ll ever make are to people who already trust you. Position your new services as an evolution of your existing relationship.
Final Thought
Developing your vertical doesn’t just help you grow—it helps you grow smarter. Instead of chasing new markets, invest in doing more for the clients and industries you already know best. The result? Higher margins, greater efficiency, and lasting business stability.
At 2717 Consulting, we help business owners analyze their current operations, identify vertical opportunities, and build strategies to scale profitably.
Let’s strengthen your vertical: 2717.consulting1@gmail.com