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David Ulevitch advises startups to focus on either government or commercial sales initially. Trying to pursue both simultaneously from the outset is extremely difficult and often a red flag for investors, as mastering even one sales motion is a huge challenge.
Founders must consider their sales motion (e.g., PLG vs. enterprise sales-led) when designing the product. A product built for one motion won't sell effectively in another, potentially forcing a costly redesign. This concept extends "product-market fit" to "product-market-sales fit."
Stop targeting the ambiguous "mid-market." Your strategy, hiring, and ACV must align with either a marketing-led SMB motion or a sales-led enterprise motion. Blending them leads to failure as they are distinctly different games.
Selling to government is counterintuitive for impatient founders. Government can't fail or be disrupted in the same way. The winning strategy is to first solve an urgent, existing problem within their constraints, build trust, and then gradually introduce broader innovation.
A founder can only excel at one function at a time. In the beginning, it's product. Once that's solid, the focus must shift entirely to go-to-market and founder-led sales. Later, it may become finance. This is a conscious trade-off and sequential juggling act.
The path to market is unpredictable. For startup Equal, the private market was initially sluggish while NHS contracts provided early revenue. Later, the private market accelerated. Pursuing different verticals with varying sales cycles creates a more stable, 'continual drip' of revenue.
According to Peter Thiel, founders who boast about multiple revenue streams or distribution channels are unintentionally revealing a critical weakness. The most successful companies typically have one dominant, highly effective revenue model and one primary acquisition channel driving their growth.
Valinor CEO Julie Busch argues that the VC push for dual-use (government and commercial) products is a distraction. Most government needs are single-use, creating a massive, underserved market. Furthermore, it's far easier to adapt a government-first product for commercial use than the other way around due to stringent compliance hurdles.
Jumping to enterprise sales too early is a common founder mistake. Start in the mid-market where accounts have fewer demands. This allows you to perfect the product, build referenceable customers, and learn what's truly needed to win larger, more complex deals later on.
While testing multiple customer profiles seems like de-risking, it's a "could work" strategy that dilutes focus and makes learning impossible. The better approach is to test segments sequentially, running a dedicated sprint for one "who would be weird not to buy" persona at a time.
Many founders fail not from a lack of market opportunity, but from trying to serve too many customer types with too many offerings. This creates overwhelming complexity in marketing, sales, and product. Picking a narrow niche simplifies operations and creates a clearer path to traction and profitability.