Once you reach the Sweet Spot — high defensibility, low incumbent attention — the game changes. You no longer sprint for survival. You compound for dominance.
But this position is fragile. It disappears the moment you attract unnecessary attention.
Staying below radar is not about hiding. It’s about controlling when giants notice you — ideally long after your moats have become insurmountable.
This is the most misunderstood movement in the entire matrix.
How to Stay Below Radar
1. Resist Expansion Temptation
The fastest way to leave the Sweet Spot is to chase bigger markets prematurely.
Larger markets look attractive. Larger markets get you killed.
Every expansion move increases your visibility on incumbent product roadmaps. If you expand before deepening moats, you simply walk into a kill zone with a larger target on your back.
Discipline beats ambition.
2. Deepen Before Expanding
Every move toward larger markets must be matched by a proportional increase in defensibility.
Expansion without moats equals suicide. Moats without expansion equals stagnation.
The order matters:
Moats first, growth second. Not the other way around.
When giants finally notice, your defensive walls must be higher than their appetite for the market.
3. Build Switching Costs
The Sweet Spot compounds only if users are locked in by the strength of your workflow, not by the weakness of alternatives.
You must embed:
High-friction integrations
Domain-specific workflows
Embedded data structures
Operational rituals
Proprietary knowledge loops
Switching should be painful, not because of coercion, but because leaving means losing genuine value.
Make departure expensive.
4. Compound Data Advantages
Every user interaction should make your product more valuable and harder to replicate.
This is not about hoarding data. It’s about shaping your system so that:
More usage → cleaner data
Cleaner data → better automation
Better automation → deeper moats
You build a compounding engine giants can’t match.
Time becomes your ally.
THE KEY PRINCIPLE
Grow defensibility faster than you grow visibility.
When giants finally notice you, your moats must be insurmountable.
These are the three strategic mistakes that consistently push startups out of the Sweet Spot:
1. “Let’s Go Horizontal!”
Expanding horizontally increases attention dramatically without increasing moats. It’s the fastest path into direct competition with giants who always have more breadth, distribution, and capital.
Horizontal ambition kills vertical defensibility.
2. “We Need More Hype!”
Press cycles, awards, PR blasts, and conference keynotes attract incumbents much faster than they attract customers.
Hype is free visibility. Visibility is exposure. Exposure is risk.
Stay invisible as long as possible.
3. “Bigger TAM = Better”
This is the deadliest lie in early-stage strategy.
Founders chase TAM to impress investors. Giants chase TAM because it is their oxygen.
If you chase TAM too early, you collide with them head-on — and your survival probability collapses.
As noted throughout the Startup Positioning Matrix, TAM size only matters after defensibility is guaranteed. Until then, big markets are death traps.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
