Instead of immediately selling to their target ICP (franchise auto dealers), Bali first built its product by working with four "practice" customers for two years. They then scaled by selling to 40 automotive vendors who served dealers. This refined the product and built credibility before they began direct-to-dealer sales.
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YC provides a built-in go-to-market engine where startups treat their 200+ well-funded batchmates as their first customers. This 'win YC, win the market' strategy de-risks early customer acquisition and provides critical initial revenue and case studies to build momentum.
Don't wait for a prototype to get traction. Hardware founders should first engage potential customers and demonstrate a profound understanding of their specific problems. This expertise builds the necessary trust for customers to commit, even before a physical product is ready.
Startups often fail to displace incumbents because they become successful 'point solutions' and get acquired. The harder path to a much larger outcome is to build the entire integrated stack from the start, but initially serve a simpler, down-market customer segment before moving up.
The most effective way to enter a niche is by first becoming the customer. Bodhi Gallo's marketing agency for home services succeeded because he first ran a dumpster company, learning the industry's language and pain points firsthand, giving him an authentic edge over competitors.
Pursuing large "whale" customers for early validation is risky because they often come with heavy demands that can derail the product vision. Instead, seek out innovative, mid-level companies who are early adopters. They provide better feedback, and building traction with them opens doors to larger clients later.
Instead of a broad launch, Everflow targeted only mobile affiliate networks—a small market they knew deeply from their previous company. This allowed them to build very specific, high-value features for that ICP, win deals, and establish a strong beachhead before expanding into larger, adjacent markets.
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.
When building a marketplace to help developers, instead of targeting all tools at once, launch by focusing on a single, specific platform (e.g., "V0 bounties" or "Cursor help"). This hyper-niche approach allows you to build liquidity and validate the model before expanding to a wider market.
Validate market demand by securing payment from customers before investing significant resources in building anything. This applies to software, hardware, and services, completely eliminating the risk of creating something nobody wants to buy.
To break into slow-moving hospitals, Aegis initially targeted smaller, more agile medical billing companies that serve them. This strategy builds a proven product and case studies with customers who have a direct need and faster sales cycles, creating a powerful entry point to the larger hospital systems.