Luigi MallardoStartups are addicted to optionality. We want to keep every door open. Every vertical. Every feature. Every possible revenue stream. We tell ourselves: “If I narrow my focus, I trap my company in a small market.”
It feels safer to go wide. But in crowded B2B SaaS markets, “wide” is where startups go to die.
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A few days ago, I sat down with Greg Head on the Practical Founders podcast to deconstruct the journey of Woffu, the B2B SaaS we scaled from €2K MRR to a strategic exit to Visma.
We didn’t raise a massive Series A. We didn’t chase unicorn valuation metrics. Instead, we made a series of uncomfortable decisions to reduce our market optionality.
The result? We increased our business optionality.
Market optionality reduces business optionality. Business optionality comes from dominance, not diffusion. Here is the blueprint behind that paradox, and why “sequencing” growth beats chasing it.
The “Optionality Trap”
There was a fascinating debate in the comments of Greg’s LinkedIn post about our episode. Some founders argued that niching down too early is risky because technology changes fast.
I understand the fear. But the biggest risk for a sub-$10M ARR company isn’t missing the next wave. It’s fragmenting its energy before it masters the current one.
At Woffu, we had the “HR Suite” temptation. We could have built an ATS, a Performance Review module, and a Payroll system all at once. If we had done that, we would have been a mediocre “All-in-One” player fighting a capital war we couldn’t win.
Instead, we chose Time & Attendance. A boring, unsexy, specific wedge. We became dominant in that specific problem for a specific Mid-Market segment.
The Lesson: Real optionality isn’t having 10 lottery tickets. It’s having one dominant cash-flow engine that buys you the freedom to purchase the next ticket later.
Growth is a Sequence, Not a Buffet
One of the best comments on the episode came from a founder who noted: “It’s about sequencing growth so today’s traction funds tomorrow’s options.”
This is the “Operator” definition of strategy.
At Woffu, we didn’t launch Inbound, Outbound, and Partners on Day 1. That would have broken us.
- Phase 1: We nailed Inbound.
- Phase 2: Once Inbound was predictable, we used that cash flow to build the Outbound machine (raising ARPA).
- Phase 3: Only when we had a repeatable sales motion did we layer in Partners.
By sequencing these layers, we grew Average Revenue Per Account (ARPA) by 7x. If we had tried to do all three simultaneously, our CAC would have spiked, and our focus would have fractured.
The Takeaway: You don’t say “no” to new channels or products forever. You say “no” for now.
The Hidden “Operational Tax” of Going Wide
Founders often view new opportunities as simple addition. “If we add this vertical, we add €X in revenue.”
But operationally, addition is division. Every new vertical divides your product team’s attention. It forces your CS team to learn a new playbook. It dilutes your marketing message.
As another CEO brilliantly put it in the discussion: “Operationally, they are division. Every new vertical divides the attention of the product team and dilutes the GTM motion.”
We avoided this tax by adhering to the 80/20 Rule of Focus:
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75-80% (All-in on Core ICP): Pipeline mix, resource allocation, and management attention went to where we were already monetizing and winning.
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20-25% (Structured Experiments): Reserved for new verticals with clear hypotheses and clear kill criteria.
This ratio allowed us to innovate without risking the ship.
Exit Value is Created Years Before the Exit
Why did Visma buy Woffu? They didn’t buy a roadmap of “potential features.” They bought a machine. Acquirers don’t pay for ambition. They pay for predictability.
They bought:
- Dominance in a specific segment.
- Unit economics that proved efficiency.
- A predictable GTM engine, not a founder-led magic trick.
Because we had focused so intensely on healthy growth and efficiency, we had leverage. We didn’t need to sell. As I told Greg: “Clarity about your endgame determines your strategy early on.”
We warmed up potential acquirers for years, treating them like strategic prospects. By the time we were ready to exit, it wasn’t a distressed sale; it was a strategic alignment.
Final Thought: The Builder’s Duty
In 2026, with AI lowering the barrier to build anything, the temptation to build everything is higher than ever.
Don’t do it. Differentiation today comes from depth, not breadth.
Focus feels restrictive. It feels like you are leaving money on the table. But as our journey at Woffu showed, from €2K MRR to a strategic exit, focus is the only leverage you actually have.
Want the full backstory?
🎧 Listen: The full episode on Practical Founders.
📖 Read: My previous deep dive into [step-by-step GTM mechanics of the Woffu journey here].
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