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Developing a new growth strategy is pointless until you've assessed the company's go-to-market maturity. Without a capable "growth engine"—including talent, processes, and systems—even the best strategy is unexecutable. This capability audit must come first to avoid wasting time during the limited PE hold period.
Lower-middle-market companies often have underdeveloped or missing go-to-market functions, termed "phase zero capabilities." Acquiring firms must account for the time and cost to build these foundational elements from scratch, a step often overlooked during due diligence, which means going backwards before going forwards.
The most common GTM mistake is hiring execution-oriented leaders who force a pre-existing playbook onto a new company. Each company's customer journey is unique and requires a first-principles approach to design a GTM motion, rather than cutting and pasting a strategy that worked elsewhere.
A one-size-fits-all GTM plan fails because market dynamics differ by segment. A case study showed a mature market thriving on fast-closing outbound deals, while a growth market relied on slower, larger deals from paid search. Marketing's leverage is dictated by segment-specific buyer behavior.
Instead of a rigid plan, early-stage companies should establish core GTM "tent poles": a defined ICP, answers to the four essential questions of value, and an engagement model. These elements provide structure but can be flexibly adjusted based on market feedback without causing the entire strategy to collapse.
Many founders mistakenly believe achieving product-market fit is the final step to explosive growth. However, growth only ignites after also finding a repeatable go-to-market fit, which translates the founder's initial sales success into a scalable process that a sales team can execute consistently.
Founders often seek a silver-bullet growth strategy. The most effective approach is tactical and relentless: identify every small point of friction in your product and funnel, fix them, and repeat the cycle. This operational excellence *is* the strategy.
Frame your go-to-market strategy as an engineering problem. Create a dedicated 'GTM engineering team,' including actual engineers, to build a programmatic stack and apply a rigorous test-and-learn mindset to every GTM motion, from outbound campaigns to event strategy.
A holistic GTM framework extends beyond just revenue. It includes building reputation, fostering relationships, and ensuring retention. The critical, often-overlooked fifth 'R' is readiness—assessing if the organization has the necessary data, processes, and skills to actually execute the strategy.
Many PE firms use backward-looking commercial due diligence, which is superficial and fails to assess a target's true growth potential. A more effective approach is go-to-market focused due diligence that evaluates the scalability of the future revenue engine, not just past performance.
While many product-led growth companies delay building a sales team, this is often a mistake. Waiting until bottoms-up growth stalls forces a painful "whiplash moment" as the company scrambles to adopt a new GTM motion. Building both motions in parallel creates a more resilient business.