For a new automation agency started by high‑schoolers, should we build a minimum viable product in six niches or double down on three?
Focus on three niches. By concentrating on fewer markets you can maximize the manpower advantage you have as a small team and deliver higher quality work. It’s better to be strong in three areas than spread thin across six.
Yeah, I think that's a great question. I highly recommend targeting multiple niches, not just for automation but for any service. The first reason is leverage: attacking three niches doesn't mean three times the work because the same messaging often works across niches, giving you three times the market surface for maybe 1.5 times the effort. When input and output diverge, that's leverage - take those opportunities. Second, as a beginner picking a single niche, you might choose one that sucks and spend months fighting uphill. It's better to hedge uncertainty by trying two or three niches simultaneously, see which are easiest to push, then double down on the validated one. This approach reduces risk and increases chances of finding a winning niche early.
Yes, you certainly can learn five to ten automations for one niche, apply them there, and then expand. I actually recommend picking three niches to start. Since you have no coding experience, you don't need any—none of this requires coding. If you want to see what it looks like, check out my recently published video where I cover exactly this question. I sourced some questions from the daily updates channel; you can head over to the 100KI expert answers for your most common questions. We were trying a new format where one of the questions was 'what niche should I pick?' and 'what automation should I sell?' So I give you a packaged version of that.
Great question. I actually just published a video that breaks this down, so I’ll point you there. The basic framework is a two‑column chart: the left side shows the types of automation you should avoid selling, and the right side lists the high‑ROI services you can sell. All of those right‑side items have been covered in videos on my channel over the past year, so you can stitch together a blueprint, add your own twists, and make sure it feels like your own offering rather than just a re‑branded template. Focus on a handful of high‑ROI automation services, customize them for your niche, and you’ll have a solid, marketable package.
I don’t have expertise in agency valuations, but from my experience I sold my marketing agency for about 2.3x, negotiated up to just under 3x—20% was cash, 80% equity in the acquirer plus performance‑based earnout. I’m not sure if 4–6x is realistic now. However, the real value is in servicing an investor’s portfolio companies: if you improve one business, you can copy the system to the others, creating huge economies of scale—one deal can generate hundreds of thousands per month. So if you can get a 4–6x multiple, go for it; otherwise focus on that growth opportunity.