Large companies often focus R&D on high-ticket items, neglecting smaller accessory categories. This creates a market gap for focused startups to innovate and solve specific problems that bigger players overlook, allowing them to build a defensible niche.

While individually small, the collective business from your "long tail" of partners creates a huge compound effect, forming a significant part of your overall revenue. This justifies investing in scalable, simple programs and a two-tier distribution model to serve them. This long tail provides essential market reach and commercial proximity that larger partners cannot.

Miha Books' pivot to highly profitable school book fairs wasn't a strategic plan. It originated from a single PTA parent's suggestion while visiting their struggling brick-and-mortar store. This highlights how listening to customers can reveal a business's most lucrative opportunities.

A seemingly ideal B2C partnership with DoorDash failed due to a poor customer profile (frugal drivers, high urgency). This failure was the catalyst for pivoting to B2B fleets, which dramatically increased their average order value from $800 to $4,000 and improved operational efficiency.

Entrepreneurs often chase trending markets. However, even a market in slight decline, like craft beer, can be enormous ($28 billion). Capturing a tiny fraction (e.g., 0.05%) of such a market can still result in a nine-figure business, making it a viable opportunity.

Assembled knew they had a real business when they discovered that Stripe, Casper, and Grammarly—all unaware of each other's efforts—had independently built the same color-coded spreadsheet to solve workforce management. This pattern of convergent, homegrown solutions signals a powerful, unmet market need.

Expanding from puzzles to napkins seems illogical, but Peacework did it to support a marketing campaign for a tomato-themed puzzle. The napkins sold surprisingly well, becoming a major new business arm. This shows that ignoring conventional product expansion advice can uncover unexpected opportunities.

Many founders operate on flawed assumptions about how they acquire customers. Analyzing marketing data often shatters these myths, revealing that sales and traffic come from unexpected sources. This discovery points to untapped growth opportunities and where marketing energy is best spent.

While scaling a proven system is usually the right move, there's an exception. If a new customer segment offers exponentially higher order values for the same fulfillment effort, the potential leverage justifies risking a new acquisition channel.