When selling software to an industry with ineffective or slow-moving customers, it's a strong signal to pivot. Instead of serving them, it may be more lucrative to build a vertically integrated solution and compete with them directly.
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When selling innovative tech to risk-averse enterprises, don't build for their needs today; build for the future they will be forced into by competitive pressure. The strategy is to anticipate the industry's direction and have the solution ready when they finally realize they are being left behind.
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.
In crowded markets, founders mistakenly focus on other startups as primary competition. In reality, most customers are unaware of these players. The real battle is against the customer's status quo: their current tools like spreadsheets, hiring a person, or using an old system. Your job is to beat those options.
Instead of fighting incumbents for their entrenched "hostage" customers, startups should focus on "Greenfield Bingo." This strategy involves building a better product and selling it to the steady stream of new companies that are not yet locked into a solution. This approach thrives in markets with high rates of new business formation.
Instead of trying to steal entrenched 'hostage' customers from incumbents, startups should focus on a 'Greenfield' strategy. By building a superior product, they can capture the wave of new companies that are not yet locked into a legacy system and will choose the best available solution.
When disrupting a market, selling enabling tools to incumbents (e.g., research agencies) is less effective than competing directly. Incumbents have misaligned incentives and are often low-intent "tire kickers," whereas their end-clients will readily switch for a better, faster, cheaper solution.
Founders who've built a product but aren't seeing traction should stop focusing on the product. Instead, they must leverage their market knowledge to find the real customer demand, even if it means scrapping prior work. This pivot can unlock massive growth, as seen with a startup that went 0 to $34M ARR.
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.
Founders often quit for the wrong reason: struggling to schedule meetings, which is merely a lack of data. The true signal to pivot or quit is when you've successfully engaged potential customers who have clear demand (pull) and they still explicitly reject your solution after multiple iterations.
In industries dominated by legacy players for decades, buyers lose the 'muscle' to evaluate new vendors. If you see low initial pull despite a strong value proposition, it may mean you need to educate the market on how to buy again, not that your product is wrong.