Getting to $1M in revenue is a major milestone. Less than 1 in 20 companies (just 5%) ever achieve the product market fit and market presence to reach this revenue threshold.
But scaling from $1M is even more challenging, with less than 1 in 200 companies (.5%) ever getting into this rarefied air. So what are the growth blockers that prevent emerging companies from reaching the next revenue stage?
In a recent conversation with my colleague Eric Rudolf, a highly sought after Fractional CMO and Go-to-Market (GTM) accelerator specializing in emerging companies, we identified 10 of the most common issues that prevent tech businesses from scaling from $1M to $10M in annual revenue.
Growth blocker #1 is below. You can see the full list of 10 here for a sneak peak at what’s to come.
Scaling Success: Growth Blocker #1: Company-Wide Misalignment on Value Proposition
According to Eric, the biggest red flag when he digs into an emerging company’s GTM motions is the absence of internal alignment in messaging or unanimous agreement on the value proposition. In simpler terms, team members aren’t articulating the brand promise or the product’s value consistently across GTM teams.
Eric emphasizes: “When you speak with different departments about the value proposition of the product, you often get conflicting messages. The Product team may focus on flexibility and seamless integration, while Marketing believes value centers around increasing revenue, and Customer Success is messaging cost savings. These disconnects are red flags that signal the need for immediate attention and alignment.”
This is a common issue we see all the time. Ask members of a sales team about the product’s value, and you might receive five different explanations. Achieving alignment across all market-facing roles, including product and product marketing, is key to conveying a unified message about the value the company brings.
Eric says: “If you see these types of disconnects, you know right away there’s work to do. When working with a Sales team, you often find misalignment between their messaging, the content on the website, and what Sales leadership is coaching. Everyone needs to be on the same page.”
One of the most important factors leading to growth potential is that there’s alignment around the value proposition across everybody in a market-facing role, including product and product marketing.
This is a crucial starting point for companies aiming to surpass the $1 million mark and reach the coveted $10 million milestone. In the upcoming installments in this series, Eric and I will delve deeper into strategies and practices that successful companies employ on their journey to substantial growth.
Stay tuned for more valuable insights on scaling your business and overcoming the challenges on the road from $1M to $10M.