“Owning the Hill” – Making Small Markets Your Friend
Recently I caught up with a seasoned SaaS CRO, and we found ourselves aligned on a key go-to-market philosophy: start uncomfortably narrow, build density and referenceability, then expand. This approach isn't just for seed-stage companies chasing product-market fit—it applies to $5M, $10M, even $20M+ businesses.
The strategy begins with an analysis to identify your "hill": a niche within a niche—a tightly defined universe of similar potential customers who generally know each other and should know you (this process could be its own post). But here's the challenge: in VC land, we've been conditioned to trigger alarm bells at the mention of small markets (“That hill is too small!” “That market can’t support our growth ambitions!”).
Yes, a big market is nice on paper—but all big markets are comprised of smaller sub-markets. The key is to start with the first hill, conquer it, and then move to the next. For example, let’s say your hill is the top 50 wine & spirits distributors in the U.S. Here’s how you own it:
Understand the Pain Points: Develop an intimate understanding of this universe’s specific challenges.
Refine Product and Messaging: Make minor product and packaging tweaks and tighten your marketing to speak directly to their business needs.
Leverage Lighthouse Customers: Highlight relevant success stories that build trust and credibility.
Dominate the Ecosystem: Attend their conferences and tradeshows, connect with their trusted third parties (e.g., ISPs, trade associations, analysts), and partner with influential thought leaders.
Become Omnipresent: Establish yourself as the go-to solution in this niche.
By saturating this small market, you generate more buzz, demand, and marketing ROI than if you spread your efforts thin. Then, you move on to the next hill—or even take several hills at once. Over time, that "tiny TAM" starts looking a lot less tiny as you expand efficiently and capture outsized share of voice. Of course, you might want to avoid “islands” with no adjacent hills.
It’s tempting to keep a broad surface area for prospecting—bigger haystack, more needles, right? But this approach often results in blending into the noise of a crowded vendor landscape. Owning the hill means standing out, building momentum, and scaling thoughtfully.