Market Expansion
You want to grow. One option is to sell your existing services to a new segment or industry—market expansion. It can add a second revenue stream, but it's risky for domain experts because you can lose the expertise advantage. You're no longer "the person who does X for Y"; you're "the person who does X for Y and also Z." Depth before breadth—expand depth in your current niche before spreading thin across many segments.
Same offer, new segment. A consultant who does go-to-market for B2B SaaS might expand to "B2B SaaS in healthcare" (narrower) or to "B2B in healthcare" (broader). The narrower expansion keeps expertise; the broader one dilutes it. Market expansion works when you have a repeatable offer and a clear way to reach and serve the new segment. It fails when you're stretching your positioning and your delivery—you become generic. If you expand, do it with a clear niche positioning in the new segment, not "we now serve everyone."
Selling existing services to a new segment. Risky if you dilute expertise; useful if you have a repeatable offer and clear niche there.
When it works
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You have a productized offer. If the service is already standardized (productized service, clear scope document), you can replicate it in a new segment. If every engagement is custom, expansion multiplies complexity.
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You can reach and serve the new segment. Do you have visibility there? Can you deliver the same quality? If not, you're guessing. Founder visibility and positioning in the new segment matter.
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You don't dilute the core. The worst expansion is "we now do X for everyone." Keep a clear positioning in each segment—or stay deep in one.