CMO Missteps: How Early Promises Can Undermine Success

Taking on the role of CMO at an (early-stage) startup and scale-ups is both exciting and challenging. It's tempting to jump straight into offering solutions and showcasing your expertise. However, doing so without a solid understanding of the company's fundamentals can set both you and the founders up for disappointment. This blog post serves as a caution for CMOs and founders, highlighting the importance of strategy over tactics and the value of laying a proper foundation before diving into execution.

For CMOs: Resist the Urge to Jump into Solutions too early

If you're a CMO in the hiring process for a new role at a startup, it's natural to feel the temptation to offer solutions right away. Founders love enthusiasm, and showing your expertise might seem like a way to secure the job. We've all been there and often the marketing leader is looked at as the big solution to most of the revenue generation problems. But let me caution you—jumping too quickly into growth hacks or tactical activities without understanding the business fundamentals is a setup for failure.

Before you craft a growth strategy, you need a clear picture of the basics: Who is the target audience? Has the company reached product-market fit (PMF)? What's the revenue model? How does the company sell, and what is their average contract value (ACV)? Questions like these are important, and skipping foundational work after you get the job often leads to unrealistic expectations and, ultimately, disappointment for both you and the founders.

Key Questions to Ask During the Interview Process

To properly understand the business, ask these key questions:

1. Do you already have a marketing plan? Have you defined a solid positioning (are you happy with what you have)? Don't make assumptions, just ask. This will give you an idea of the level of maturity inside the company when it comes to marketing.
2. What is your current revenue model? Many startups don't provide pricing information on their websites, and guessing can lead to incorrect assumptions. Get clarity on how they generate revenue.
3. Who do you consider your main competitors? Understanding their competitors helps you see where the company stands and whether their positioning is unique or needs work.
4. Who are the decision makers within the companies you are already doing business with? This can help you gauge whether the company has hit PMF or not. If they can't clearly define their decision makers, they may still be working to find product-market fit.
5. What is your annual recurring revenue (ARR), and how is it distributed across segments (small business, mid-market, enterprise)? This will tell you where they've found the most traction and where you may need to focus efforts to grow or refine.
6. What is the ACV? Understanding ACV helps you shape the growth strategy—whether it's Product-Led Growth (PLG), Marketing and Service-Led, or Sales-Led. Knowing ACV helps determine which growth and go-to-market (GTM) strategy is most suitable.

The Importance of a 90-Day Plan

Once you have this information, you will approximately know the GTM direction, but it's still too early to dive into tactics. Instead, offer a 90-day plan to:

1. Audit the Company: Understand the current state of the business, identify gaps, and gather insights.
2. Interview Key Leaders: Gain perspective from different stakeholders about their goals, challenges, and expectations.
3. Talk to Customers: Learn about their pain points, why they chose the product, and their overall experience.
4. Develop a GTM Strategy: Based on your findings, create a go-to-market strategy that aligns with the company's current stage, business model and growth potential.

Your strategy should be realistic, transparent, and grounded in an honest assessment of where the company is today. Skip the urge to jump straight into flashy growth hacks or superficial tactical moves. Founders might initially be impressed, but without the strategic backbone, failure to deliver results will have you out the door before you've even made an impact.

For Founders: Be Wary of Tactical Over Strategy

If you're a founder hiring your first CMO, it's easy to get excited about marketing jargon or a seemingly structured approach. But remember, tactics without a strategy are often the fastest path to disappointment.

Ask yourself: Does this CMO candidate understand your business beyond just surface-level tactics? Have they asked questions that get to the heart of your business model, your customers, and your competitive landscape? If not, they might not yet be ready to lead your marketing efforts.

Avoid a purely tactical hire. Look for someone who shows they understand your strategic needs, and who can create a plan that’s realistic for your company’s current stage.

For more insights on what to look for when hiring your first CMO, you can read my detailed guide here.

In short

For both CMOs and founders, the key to success lies in building a strong strategic foundation before diving into full swing tactical execution. CMOs should resist the urge to jump straight into solutions without fully understanding the business, and founders should ensure they hire someone who takes a strategic approach. By taking the time to audit, interview, and understand, you'll be set up for sustainable growth and success.