Got started scratching our own itch basically. Needed time billing software that integrated with Xero for tracking consulting work, was nothing really available at the time. Also hated traditional timesheet/timecard approach, hence the slightly different take on the user interface (twitter-esque time entry)
Built something using Xero's API which was in beta at the time, and then slowly grew off the back of that through friends/colleagues liking the product, word of mouth & channel referrals (Xero had a landing page for their 3rd party integrations).
We also engage closely with the accounting/bookkeeping community, so we get a lot of referrals through accounting providers who need software for their clients that integrates with their back office accounting packages. Repeated the same process with other channel partners (QuickBooks, MYOB, etc.).
It's definitely been a long slog - no hockey stick growth yet.
Would say that sales & promotion is one of our WEAKNESSES to be honest - I'm very much a developer who has fallen into trying to manage this kind of stuff. Always open to ideas, suggestions and feedback :-)