 by Jonathan Simnett, Managing Director at Hampleton Partners, Co-Host of The Difference Engine Podcast Originally posted on the Categorical Blog. Read the entire post here. URL for this Post.  Building Categories is hard. It requires creativity and in-depth market understanding combined with meticulous planning and faultless execution, particularly in the early days, as you establish both the Category and your leadership of it and as you execute your go-to-market strategy.
Jason Lemkin is a seasoned tech executive, venture capitalist, and author based in California. Known for his candid opinions, I recently witnessed one of his presentations on the Top Ten Go-to-Market (GTM) Mistakes that many companies make. These are the missteps he thinks that can destroy a SaaS business and should be avoided at all costs. I’d also argue that in go-to-market terms these will also ruin your chances of building a SaaS Category. Here’s a look at Jason’s warnings: 1) Don’t Hire a Sales VP Who Can’t Sell Face-to-Face or Demo a Product Lemkin stresses that in the early stages of a SaaS company, hiring a VP of Sales who can’t roll up their sleeves and engage directly with customers is a huge mistake. In the fiercely competitive world of sales, the top people need to be in the trenches. If a sales VP can’t demo the product or communicate directly with prospects, they’re not the right fit. Confidence is key in sales, and if a leader can’t engage directly with customers, it’s a major red flag. 2) Don’t Hire a VP of Marketing Who Can’t Do Demand Generation Hiring someone focused on corporate marketing or strategy at an early-stage SaaS company is a mistake. At the start, the focus should be on generating revenue, and the right marketing leader should be able to drive demand generation. Ask candidates if they’ve “held a commit”—i.e., been responsible for meeting sales targets. If they haven’t, they’re not the right fit for your early-stage company. 3) Don’t Step Out of Sales Founders often want to return to product development, but Lemkin advises against it—at least for a while. A great sales VP will open and close deals, but founders need to be deeply involved in sales to build credibility. Customers love meeting the founder early in the process, and as the business scales, founders need to keep their hands in sales for as long as possible. 4) Never Cut Marketing Too Deeply During tough times when cash is tight, many companies make the mistake of cutting marketing budgets. But Lemkin warns that cutting marketing is cutting future potential. While cutting sales might affect immediate revenue, cutting marketing hinders growth in the long term. If you trust your VP of Marketing, let them spend the budget wisely to drive growth. 5) Not Properly Jumping on the AI Bandwagon AI is no longer optional. While it may not be a perfect fit for every B2B space, it’s where the budget and competition are heading. Lemkin suggests that failing to integrate AI into your product offering could mean losing out on potential business. If your CTO doesn’t understand how to leverage AI, it might be time for a change at the top. 6) Putting Profitability Above Growth In today’s market, growth is often more valuable than profitability—especially for private companies. Lemkin highlights that growth is worth 2x profitability in public companies, but 10x profitability in private ones. If you want to scale and eventually have an IPO, focus on rapid growth, even at the cost of short-term profitability. Read the rest of this post here.
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