Instead of starting with a scalable platform, Decagon built bespoke, perfect solutions for its first few enterprise customers. This validated their ability to solve the core problem deeply. Only after proving this value did they abstract the common patterns into a platform.
Founders who've already built a product haven't missed the 'validation' window. The focus simply shifts from 'is there a problem?' to de-risking subsequent assumptions: Is the solution worthwhile? Will people pay enough? Can customers be acquired profitably? This process is ongoing, even at scale.
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.
Most SaaS startups begin with SMBs for faster sales cycles. Nexla did the opposite, targeting complex enterprise problems from day one. This forced them to build a deeply capable platform that could later be simplified for smaller customers, rather than trying to scale up an SMB solution.
While the goal is to build a platform (second-order thinking), initial single-purpose app ideas (first-order) are critical. They serve as your "golden evaluation set"—a collection of core use cases that validate your platform is solving real user problems and is truly useful.
Large enterprises don't buy point solutions; they invest in a long-term platform vision. To succeed, build an extensible platform from day one, but lead with a specific, high-value use case as the entry point. This foundational architecture cannot be retrofitted later.
A business's core function is to become a system for repetition. This starts by finding one customer with strong demand, delivering a supply that fits perfectly, and documenting that success. The entire business then becomes a 'factory' optimized to find and replicate that initial case study.
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.
First-time founders often over-intellectualize strategy. Decagon's founder learned from his first startup that a better approach is to talk directly to customers to discover their real problems, rather than creating a grand plan in a vacuum that fails upon market contact.
Many B2B companies begin by customizing software for one client, then stacking new custom projects for subsequent clients. They believe they are building a product, but are actually creating a complex, unscalable monolith that is difficult to maintain and evolve.
Validate startup ideas by building the simplest possible front end—what the customer sees—while handling all back-end logistics manually. This allows founders to prove customers will pay for a concept before over-investing in expensive technology, operations, or infrastructure.