If your count of the number of businesses there are is accurate, than that sounds like a very small number of potential customers. How are you going to address them all? Unless they have a website where they all hang out to talk shop, you'll have to spend money to get to them, and $25 a month does not permit all that much of a marketing spend.
I sell bingo cards to elementary schoolteachers. The idea strikes most people as pretty niche. I once estimated the total addressable market at 2,000, which turned out to be severely understating the number. (Using Twitter accounting I have over 200k users.) If I had acted upon that estimate, I probably would have shut the business prior to starting and never learned I could sell to a multiple of that.
It is highly likely that you are underpricing the service at $25 per month, particularly if it creates revenue or provably decreases costs for the business involved. That is a fraction of what an ad in the Yellow Pages costs, for example. (They cost enough to have pricey sales reps pitch them directly to customers.)
There is always the option of using the revenue/experience/etc you get from this app and using it to power your next adventure, by the way. If you're intimately connected to this problem domain and will have far and away the best solution for it, and can't see a path to more than $100k revenue per year... oh well? Try it, learn a little, apply your lessons to attacking the next problem.
I sell bingo cards to elementary schoolteachers. The idea strikes most people as pretty niche. I once estimated the total addressable market at 2,000, which turned out to be severely understating the number. (Using Twitter accounting I have over 200k users.) If I had acted upon that estimate, I probably would have shut the business prior to starting and never learned I could sell to a multiple of that.
It is highly likely that you are underpricing the service at $25 per month, particularly if it creates revenue or provably decreases costs for the business involved. That is a fraction of what an ad in the Yellow Pages costs, for example. (They cost enough to have pricey sales reps pitch them directly to customers.)
There is always the option of using the revenue/experience/etc you get from this app and using it to power your next adventure, by the way. If you're intimately connected to this problem domain and will have far and away the best solution for it, and can't see a path to more than $100k revenue per year... oh well? Try it, learn a little, apply your lessons to attacking the next problem.