Hiring More Sales People Will Not Fix Your GTM

Founder: What is GTM?

Me: I understand that you have a clear understanding of your product and are already selling it. However, when I mention GTM, I'm referring to your go-to-market strategy. It involves a comprehensive plan to target customer pain points effectively, establish the right positioning that resonates with your audience, and implement a structured marketing and sales funnel. This strategy ensures that you can grow your business at an optimal pace, with specific revenue targets and a focus on the unit economics that will help you achieve those goals. In other words, I'm interested in knowing the specific actions you will take to reach the revenue numbers projected in your plan.

Founder: I plan to hire more salespeople to sell like me.

Me: I see your intention to expand your sales team, but let me elaborate on the importance of a well-defined GTM strategy. It is crucial to have a solid plan in place before your company becomes investable. When engaging with potential investors, they will expect you to have a clear understanding of how you will achieve your revenue growth targets. They want to see your internal confidence and supporting evidence that demonstrate your ability to execute your plan or make necessary adjustments based on market feedback.

Based on my experience working with venture capitalists, the discussion on GTM typically arises by the second meeting, assuming you have already convinced the investor of your business's potential and identified a segment with high growth prospects. Defining and refining your GTM strategy is not only about gaining investor confidence, but it is also essential for your own team's confidence in achieving your revenue goals.

By understanding your prospects' pain points, refining your positioning (addressing their urgent needs and pricing expectations), and creating a compelling narrative that guides them from engagement to purchase, you can scale your activities effectively. This approach differentiates successful companies from those that fall behind in the market.