Instead of proactively targeting unproven segments, use a 'Yellow' ICP category to test expansion. When prospects adjacent to your core ICP arrive as strong inbound leads, you can selectively engage. This allows the market to pull you into your next profitable segment, as exemplified by Snowflake's organic move into the enterprise.

An Ideal Client Profile (ICP) is insufficient. Adopt a Perfectly Profitable Prospect Profile (P3P) to filter for alignment on core values, culture (e.g., agile vs. structured), and delivery fit (are they ready for your solution?). This proactively avoids friction and ensures engagement with high-value, low-headache clients.

Company-level Ideal Customer Profiles (ICPs) are standard, but top reps should define their own personal ICP. This helps them filter prospects and avoid closing deals that, despite high commissions, will inevitably lead to churn, support issues, and reputational damage down the line.

To define Ideal Customer Profiles (ICPs), go beyond analyzing past data. Use the Analytic Hierarchy Process (AHP), a statistical method where the executive team weights criteria and scores potential markets. This forces a rigorous, data-driven prioritization of the most promising customer segments.

Founders often believe their ICP is a theoretical construct for their website and pitch decks. In reality, a company's true ICP is determined by the customers the sales team is actively pursuing and successfully closing, which can reveal a critical disconnect from the intended strategy.

Instead of a single, rigid ICP, define three tiers. Green: Your core target, for outbound efforts. Red: Accounts you refuse to sell to. Yellow: The periphery where you sell opportunistically (e.g., inbounds), allowing you to test and learn before formally expanding your ICP.

Executive teams often create an ICP based on a 'wishlist' of big logos. The most accurate ICP is actually found by analyzing your first-party CRM data. Examining patterns across both close-won and close-lost deals reveals surprising truths about which customer segments are actually the best fit for your solution.

Ditch the aspirational "Ideal Client Profile," which represents a rare, perfect-world scenario. Instead, build a "Target Client Profile" that defines which customers will perceive the most meaningful value from your offering. This provides a realistic, operational benchmark for qualifying leads.

At the $300k revenue stage with one salesperson, defining a precise Ideal Customer Profile isn't just for targeting. It's a survival mechanism to focus limited resources, prevent churn, and ensure every sales effort contributes to scalable growth, rather than creating future service burdens that consume your only salesperson.