Beyond Sales & Marketing: How to Fix Your B2B Business Strategy

Building a successful B2B company can be a challenging task. You might think that the key to success lies in having a killer Sales & Marketing team, but the truth is, many companies actually have a business strategy problem that they refuse to acknowledge.

It's common for less than half of sales reps to hit their quota, and when that happens, companies tend to look for a quick fix by firing their VP Sales and bringing in a new Sales leader. However, this only sets the new leader up for failure, and the underlying business strategy problem remains unaddressed.

Another common mistake companies make is blaming their marketing team for not driving enough pipeline, and subsequently firing the team or agency. In reality, the root cause of the problem may be that nobody wants their product. This is indicative of a deeply rooted business strategy problem that Sales & Marketing alone cannot solve.

Let's delve into the key reasons why some companies struggle with their business strategy and how they can address them:

Selling a commodity product in a crowded market

One of the main reasons why some companies struggle is because they sell a commodity product in a crowded category. In other words, their product is undifferentiated, and there are many other players in the market offering the same thing. This makes it challenging for companies to stand out and attract customers.

Competing against a giant category leader

Another reason why some companies struggle is that they are the 8th player in the category and are competing against a giant category leader. This makes it even harder for them to attract customers and make a dent in the market.

Trying to be everything to everyone

Many companies don't conduct customer research and instead try to be everything to everyone, which means they end up being nothing to no one. They expect people to magically buy their product, without realizing that customers have specific needs that need to be addressed.

Poor GTM strategy

Some companies have a GTM (Go-to-Market) strategy that simply won't scale. They try to sell a $2k ACV product through an enterprise Sales team, but the unit economics don't work, and the flow of VC funding eventually dries up.

Impossible growth targets

Finally, some companies raise too much money and set impossible growth targets for themselves. This puts them under constant pressure and makes them feel like they are always playing from behind.

If your company is struggling with any of these issues, it's time to stop blaming your Sales & Marketing team and acknowledge that you have a business strategy problem that needs to be addressed.

Building a solid business strategy

The only answer to a business strategy problem is to go back to the drawing board and build a solid business strategy for the next phase of growth. This involves conducting customer research, defining a clear value proposition, and identifying the right channels to reach your target customers.

Marketing & Sales can't save a sh*tty product, service, or company

It's important to remember that Marketing & Sales can't save a sh*tty company. If your business strategy is flawed, no amount of marketing or sales tactics will help you succeed.

Answer these questions:

1. Is our product differentiated enough to stand out in a crowded market?
2. Are we conducting enough customer research to truly understand our target audience?
3. Is our GTM strategy scalable and aligned with our growth goals?
4. Are we setting realistic growth targets based on our current resources and market conditions?
5. Have we developed a clear and differentiated value proposition that resonates with our target customers?

Actionable tips:

Here are some actionable tips for building a solid business strategy:

• Conduct customer research to understand their needs and pain points
• Define a clear value proposition that resonates with your target customers
• Identify the right channels to reach your target customers
• Create a compelling brand story that sets you apart from your competitors
• Set realistic growth targets that are achievable and sustainable

Key takeaways:

1. Your Sales & Marketing team can't solve a business strategy problem. If your product is undifferentiated, you're trying to compete in a crowded market as the 8th player, or your GTM strategy won't scale, you need to go back to the drawing board and develop a solid business strategy that addresses these issues.
2. Conducting thorough customer research is critical to understanding your target audience and developing a value proposition that resonates with them.
3. Developing a scalable GTM strategy that aligns with your growth goals is essential to achieving sustainable growth.
4. Setting realistic growth targets based on your current resources and market conditions can help prevent the feeling of always playing from behind.
5. Developing a clear and differentiated value proposition that sets you apart from the competition is key to building a successful B2B brand.