R3 Printing: How to capture a $16Bn industry 💰❓
At R3 Printing, we're targeting a $16 billion-dollar industry that's growing at double-digit rates year-over-year. Our plan of attack? Start small.
For an early-stage company like R3 Printing with finite resources with which to enter a large market sector (additive manufacturing is a $16Bn industry in 2019, growing to $36Bn by 2024), customer acquisition "battles" have to be chosen wisely. As such, we've segmented our market capture strategy into phases.
Our specific choice to start with on-demand manufacturers (ODMs) that fit into the 'small and medium-sized business' (SMB) category was no accident. On-demand manufacturers offer 3D printing services as a primary source of revenue. Therefore, these customers are domain experts and are themselves intimately familiar with the pain points we’re addressing. Eager to lower their overhead labor costs and combined with the relative lack of bureaucracy in small and medium-sized businesses, the efforts required to close sales are low-lift.
To address concerns about a target market that's too narrowly-defined, our research shows the following about our initial target market size:
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The Result: By starting with a narrow target of SMB ODMs and saturating that (and every subsequent) category before progressing to the next one, R3 Printing gains and maintains a secure foothold in the market that generates revenue to bolster resources before pursuing bigger, but more complex and higher-lift customer acquisitions. This ensures the long-term stability and value of the company for the benefit of employees and investors, both current and future.