Start with smaller customer segments where requirements are consistent, then expand like layers of an onion
Smaller customers have more consistent requirements, enabling clearer product roadmaps and faster iteration. As you expand to larger customers, they need the same core solution plus extra features - you don't have to rebuild, just add layers.
When to use
When choosing between SMB and enterprise as your initial target market, especially for B2B SaaS products
Don't do this
Chasing large enterprise customers first because they have bigger budgets, only to get stuck building custom features that fragment your product
5 Founders Who Did This
Targeted SMBs with 3+ SaaS apps instead of large enterprises because smaller customer requirements are more consistent
Started with mid-market SaaS companies that had data but lacked engineering resources for personalization. These companies had consistent requirements and could adopt quickly with JavaScript integration.
Started by selling to Bay Area AV startups of similar size, used those wins and feedback as a springboard to traditional automakers, then expanded to defense, mining, and trucking
Started with smaller startups where requirements were consistent and trust barriers were lower, then expanded layer by layer to enterprises as credibility grew.
Started with only software/SaaS companies because they share identical financial tool stacks, then expanded to adjacent services/agencies