Before building, founders in complex industries must deeply understand the operational rigor and nuances of their target vertical. This 'operator market fit' ensures the solution addresses real-world workflows, as a one-size-fits-all approach is doomed to fail.

Horizontal SaaS companies fracture their customer knowledge across diverse industries, forcing generic messaging. Vertical SaaS companies build compounding knowledge with each customer within a niche. This leads to deeper insights, stronger competitive secrets, and more effective, specific messaging over time.

Square's product development is guided by the principle that "a seller should never outgrow Square." This forces them to build a platform that serves businesses from their first sale at a farmer's market all the way to operating in a large stadium, continuously adding capabilities to manage growing complexity.

Pendo's CPO warns that scaling isn't just about replicating processes for more teams. Leaders must simultaneously build coordination systems (design reviews, clear communication) while fighting to maintain the "maniacal focus on the customer" and rapid innovation that characterize small teams.

When deciding between deepening a vertical, adding adjacent ones, or going horizontal, analyze two key factors: the extent of product modification needed and your ability to market and sell to the new audience. This framework simplifies a complex strategic choice.

Large enterprises don't buy point solutions; they invest in a long-term platform vision. To succeed, build an extensible platform from day one, but lead with a specific, high-value use case as the entry point. This foundational architecture cannot be retrofitted later.

In a multi-product company, horizontal teams naturally prioritize mature, high-impact businesses. Structuring teams vertically with P&L ownership for each product, even nascent ones, ensures dedicated focus and accountability, preventing smaller initiatives from being starved of resources.

Product management "range" is developed not by learning domain-specific facts, but by recognizing universal human behaviors that transcend industries—the desire for simplicity, convenience, or saving time. Working across different verticals hones this pattern-matching skill, which is more valuable than deep expertise in a world of accessible information.

Pendo's CPO advocates for a blended approach in enterprise B2B. The product must enable self-service and stand on its own (PLG), but a skilled sales team is crucial for navigating complex procurement, building business cases, and establishing trust with large, regulated customers.