Instead of random growth, businesses have five clear expansion paths: serve wealthier clients (upmarket), serve a mass market (downmarket), enter a new vertical (adjacent), generalize your solution (broader), or hyper-specialize (narrower). This provides a strategic map for growth.

When testing a new, potentially higher-value customer segment, the single most important data point to validate is revenue retention. Focus initial efforts on confirming that new customers reorder quickly, as this proves the long-term viability and stacking revenue model of the new market.

While doubling down on a proven strategy is usually wise, this rule can be broken when a new market offers exponentially greater (e.g., 100x) value per customer for the same operational effort. The potential upside is too significant to ignore, justifying the risk of a strategic test.

When moving beyond your initial niche, target adjacent verticals. For example, a company serving realtors should target mortgage brokers next, not an unrelated field like lawn maintenance. This strategy maximizes the transfer of product features, market knowledge, and potential word-of-mouth.

Growth isn't random; it can be planned along five vectors. From your current market, you can target higher-paying clients (upmarket), a larger volume of smaller clients (downmarket), different industries (adjacent), a wider category (broader), or a more focused sub-niche (narrower).

Pivoting isn't just for failing startups; it's a requirement for massive success. Ambitious companies often face 're-founding moments' when their initial product, even if successful, proves insufficient for market-defining scale. This may require risky moves, like competing against your own customers.

The highest risk-adjusted return comes from amplifying what already works. The likelihood of a new marketing channel or sales script succeeding is statistically low. Instead of rolling the dice on something new, you should allocate resources to dramatically increase the volume of your proven winners.

Companies like Amazon (from books to cloud) and Intuitive Surgical (from one specific surgery to many) became massive winners by creating new markets, not just conquering existing ones. Investors should prioritize businesses with the innovative capacity to expand their TAM, as initial market sizes are often misleadingly small.

When Fal was debating its pivot, their investor Todd Jackson asked which idea would get to $1M ARR faster versus $10M ARR faster. This framework forced them to evaluate not just immediate traction but long-term market size and velocity. It provided the clarity needed to abandon a working product for one with a much higher ceiling.