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.
7) Hiring the Broken, the Bitter, and the Fractional
SaaS is tough, and it’s easy for people to burn out in the fast-paced tech world. Lemkin advises against hiring people who are “broken” by the industry or those who can’t keep up with the pace. In his words, “Don’t hire anyone who can’t play a 48-minute game.” Hire people at the top of their game, who are motivated and passionate, not those who are just looking to coast.
8) Hiring for Logos
Lemkin admits that he’s made this mistake before. Hiring based on a candidate’s previous employer—especially if that company has a well-known logo—can be tempting. But it’s important to ask yourself: Would you hire that person if they didn’t have the big-name company on their resume? It’s easy to get blinded by prestigious logos, but in a startup environment, that’s not the kind of person who will thrive.
9) Looking for Instant ROI
Building a pipeline takes time, and that’s something many early-stage companies fail to understand. You can’t expect instant returns from marketing or sales efforts. Lemkin emphasizes that referral networks and relationships take time to build. Focus on long-term growth, not quick wins, and understand that adding new models like Product-Led Growth (PLG) to your sales strategy requires a different approach and time to build.
10) Eliminating the True Customer Success Function
One mistake that’s becoming more common is integrating the customer success function into sales. However, these two functions are distinct. While sales is focused on closing deals and driving revenue, customer success should be entirely focused on ensuring customer satisfaction and long-term success. It’s important not to confuse the two, especially when your goal is to build lasting relationships with customers.
What We Learned
Summarizing these ten key points, one thing becomes clear: in the early stages of your go-to-market strategy, focus is everything. Stay lean and agile, but make sure you’re paying close attention to who you’re hiring. Experience matters, but don’t bring in people with a corporate mentality or a tendency to rely on their previous job titles. Instead, look for people who are passionate about the mission and eager to roll up their sleeves.
Lemkin’s final piece of advice is one that I wholeheartedly agree with: “In hiring, the most important question is, what would you do in your first few weeks after joining?” If the answer isn’t “Go and see customers”, then that’s a sign that the person doesn’t understand the purpose of the company—serving the customer.
By sticking to these principles and avoiding these common mistakes, your SaaS business will have a much better chance of achieving long-term Category success. Keep your focus on customers, growth, and hiring the right people for the right mission—because in the end, that’s what truly drives Category success.