Zebras: Why the Best Customers are Hiding in Plain Sight

Welcome to Advisor Marketing News, the monthly newsletter that delivers practical marketing strategies designed to help you grow your client base. Each issue is based on insights and analysis from our proprietary database of more than 80,000 business owners, helping you refine your message, target the right audience, and build a more successful advisory business. Enjoy!

Zebras: Why the Best Customers are Hiding in Plain Sight

As an advisor looking to grow your practice, you’ve likely encountered two extremes: large businesses with more than $10 million in revenue (we call those “Whales”), and Chipmunks, which are small businesses earning less than $1 million. Bigger companies may have deeper pockets, but their decision-making process can be slow, and they often already have internal advisors, investors, or a sophisticated C-suite. On the other hand, smaller businesses, while eager for strategic advice, typically can’t afford your services.

So where does that leave you? According to a recent study by Value Builder Analytics, the answer lies in the middle: Zebra businesses—those generating between $1 million and $10 million annually. They are large enough to afford and appreciate your expertise, yet still small enough to need it. Like their namesake, Zebras hide in plain sight. Just as lions, with their colorblind vision, confuse a zebra's stripes for tall blades of grass, these businesses often go unnoticed by advisors who focus on larger companies. But it’s these Zebra businesses that offer the greatest opportunity.

You can find the new report from the Value Builder Analytics team here and we’ve summarized some key insights below.

Now, let’s explore why targeting Zebras could be the key to unlocking growth in your advisory practice.

The first step is to understand what the upside could be in targeting Zebras. Recent data from the NAICS Association reveals that Zebras account for approximately 934,000 businesses in the U.S., compared to about 181,000 Whale businesses and 15.2 million Chipmunks. While Chipmunks vastly outnumber Zebras, they often lack the budget to afford strategic advisory services. Advisors can easily spend too much time providing advice to Chipmunks without a reasonable return. Outnumbering Whales by a ratio of 5 to 1, Zebras are a prime opportunity for advisors, offering both growth potential and the ability to pay for your services.

So, how do Zebras compare to the rest of the market? We gathered data from a recent sample of 20,000 business owners who completed The Value Builder questionnaire to arrive at the insights below. If you’re curious how you can offer the Value Builder Assessment to your clients, you’ll find the details here. Strategically Zebras differ in some significant ways from Whales and Chipmunks, particularly in their profit and growth expectations:

• Profitability: Zebra businesses are in a unique sweet spot when it comes to profitability. 36% of Zebras report profit margins between 11% and 20%, which is roughly 24% higher than the general business population. This consistent profitability makes Zebras far more financially stable than Chipmunks, who are often strapped for cash. What’s more, Zebras aren’t just stable—they’re half as likely to lose money. Only 6% of Zebras reported a loss last year, compared to 13% of the overall market.

• Revenue Growth Expectations: Zebras generally expect steady, moderate annual growth, outperforming the expectations of the general business market. Twenty-nine percent of Zebras project growth of up to 10% with another 29% expecting growth of between 11% and 20%. They are more focused on maintaining sustainable growth compared to Chipmunks, which may be more volatile. Whales, while capable of higher growth rates, typically have more modest expectations due to their size and market saturation. Zebras fall in between, representing a stable growth opportunity.

The next question you’re probably asking yourself is, “Where do I find them?” LinkedIn is a great resource, provided you follow a few important steps. Let’s use the example of the Entrepreneur's Organization (EO), which is a global network of companies with at least $1 million in revenue to see how this is done. Here’s how you can find EO Zebras using LinkedIn and following these steps:

1. Use Keywords in the Search Bar. Search for titles like “Owner,” “Founder,” or “CEO” and combine them with “Entrepreneurs’ Organization” or “EO”. You must use quotation marks around the words and a qualifier like AND to connect them. For example: “Founder” AND “EO”. In this example the results will show Founders who are EO members.

2. Use Industry Specific Keywords. Refine your search with keywords like “Founder” AND “EO” and “Tech” or other industry you’re after.

3. Check Company Size. Premium tools like Sales Navigator make this next step easier with filters, but if you’re running the free version of LinkedIn you can manually scan each contact’s company page to check for the number of employees. Zebras typically operate a company with 11-50 employees.

4. Engage with EO Content. Follow hashtags like #EOglobal or #EntrepreneursOrganization and engage with relevant posts. EO members often share insights that can lead to valuable connections.

Once you connect with a Zebra, it’s important to understand what they’re looking for when you pitch them on your services. Zebras are a very different animal from other business owners, and it’s crucial to understand what sets them apart when pitching to them. Zebras prioritize working with advisors who have a deep understanding of their specific industry. In fact, six in ten Zebra owners prioritize advisors who have a proven track record of success in their field, making industry expertise the most important factor in their decision-making process.

This preference means that generalist advice won’t resonate with them. Zebras aren’t looking for broad strategies—they want advisors who know the nuances of their market and can provide tailored solutions to the specific challenges they face. By focusing your expertise on a particular industry, you become far more relevant to their needs. Specializing in a six-digit NAICS code, for example, positions you as the go-to expert who understands their pain points and can help them maximize profit margins and ensure long-term operational stability.

So, how can you best work with Zebras? They often face complex challenges but have limited internal resources to help them navigate those issues. Unlike Whales, Zebras rarely have investors, boards, or C-level managers to rely on for strategic advice, which is why they turn to external advisors like you to be their trusted sounding board. With fewer internal decision-makers, Zebras are more dependent on external expertise to help them streamline operations, reduce owner dependence, and plan for future growth and profitability. Mastermind workshops can be an effective way to engage Zebra business owners. These workshops bring together Zebras facing similar challenges, allowing them to learn from each other while benefiting from your expert advice.

While other advisors may focus on chasing Whales, Zebra businesses offer the ideal blend of need and financial capability. Their steady growth, profitability, and openness to strategic advice make them a prime target for advisory services. By focusing on Zebras, you position yourself to serve a large, profitable, and underserved market segment.

📖 Did you know, research from business owners reveals that getting an owner to open up about their next chapter unlocks a hidden wallet worth 60% more in terms of what they’re willing to spend on external advice? Check out the data and learn how to start The Endgame Conversation®️ with this free eBook.

📌 The 2025 Value Builder Summit is happening on March 2-4, 2025, in Austin, Texas. Network with over 200 fellow advisors and hear from industry experts like best-selling authors John Warrillow (Built to Sell), John Jantsch (Duct Tape Marketing), Rob Walling (Exit Strategy), and more. You can find all the details and registration info here.

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This Week's Contributors

Jason Reilly, Vice President of Marketing; Michael Sarkis, Director of Advisor Marketing; Deanne Kong Ting, Director of Customer Success; and Jen Chou, Senior Graphic Designer.