Remember the days when raising capital was as easy as ordering a latte with oat milk? Interest rates were practically non-existent, and the mantra was simple: “Raise every 18 months and build, build, build!” Back then, profitability was something we promised investors we’d worry about in the future, maybe in the “out years,” whatever those were. We could afford to think big and hire a seasoned CRO from a Fortune 500 company, even if our startup was only generating $20M in ARR. “Why not?” we thought, “She led enterprise sales at Oracle; she’s perfect for us!” And of course, she’d need a 20-person team to get things off the ground—no questions asked.

But, oh, how times have changed. Welcome to the world of constrained capital, where the old ways of Go-To-Market (GTM) are being replaced by strategies that emphasize efficiency, profitability, and tight alignment across the entire organization. The shift isn’t just a trend; it’s a necessity. Let’s take a walk down memory lane to see where we were, and then explore the new GTM world we’re living in today.

The Old GTM: When Money Was No Object

In the old GTM world, the playbook was straightforward but, in hindsight, a bit reckless:

• Raise Capital Without Fear: Interest rates were at 0%, and capital was abundant. Startups could raise money every 18 months, with no immediate pressure to become profitable. The focus was on growth at all costs.
• Massive, Unprofitable Businesses: The goal was to build massive enterprises, even if they were unprofitable. The thinking was that profitability would come later—much later.
• Hire Big, Hire Expensive: Bringing in a CRO who led enterprise sales at Oracle seemed like a no-brainer, even if she was overqualified for a $20M ARR startup. And naturally, she’d need a large team to match her experience.
• Bad Leads, High Churn: Marketing sent over leads, Sales closed them, and Customer Success dealt with the fallout. The result? High churn rates and a pipeline that couldn’t sustain long-term growth.
• Siloed Operations: Pipeline meetings were monthly, but crucial departments like Marketing and CS weren’t involved. The lack of alignment led to inefficiencies and misaligned goals.
• Unit Economics? Who Cares?: When unit economics didn’t add up, the solution was often to throw more money at the problem. This approach was unsustainable, but it was the norm.
• Misaligned Incentives: The CRO’s compensation was often based on monthly commissions, which didn’t always align with the company’s long-term goals.
• The Comical Reality: As the old joke goes, “The food here is terrible and the portions are tiny!” This sums up the frustration of working in a system that was flawed from the start.

The New GTM: Profitable, Efficient Growth

In today’s world, where capital isn’t as freely available, the GTM strategy has undergone a radical transformation. The focus is now on Profitable Efficient Growth (PEG), and it’s changing the way we do business.

• Building a PEG Business: The new GTM strategy revolves around building a business that is both profitable and efficient. The goal is to grow steadily and sustainably, without the need for constant fundraising.
• Slow, Steady, Sustainable: Rather than focusing on rapid, unsustainable growth, the emphasis is on growing a bit more slowly but ensuring that the business will be around for the long haul.
• Hands-On Leadership: Instead of hiring a big-name CRO from a massive enterprise, the new GTM playbook values a “hands-on keyboard” VP of Sales who is closely aligned with the Head of Marketing. Together, they drive reasonable growth by focusing on the Ideal Customer Profile (ICP) and improving meeting qualification and management.
• Tight Alignment Across Teams: The new GTM strategy requires tight alignment across Marketing, Customer Success, Sales, and Operations. Weekly “GTM Weekly Review” meetings with the CEO ensure that all departments are working together towards common goals.
• Operating Cadence Built Around GTM: Rather than having separate operating cadences for each department, the entire business is built around the GTM strategy. This ensures that every decision is made with the company’s overall goals in mind.
• Unified Compensation Structure: In the new GTM world, every executive’s compensation is based on a mixture of company performance and individual performance. This annual plan aligns incentives across the entire leadership team.

Why the New GTM is the Only Path Forward

In a world of constrained capital, aligning your team around a cohesive GTM strategy isn’t just a nice-to-have; it’s the only path forward. Companies that fail to adapt will find themselves struggling to compete in a market that demands efficiency, profitability, and cross-functional alignment.

Statistics back this up. According to a study by McKinsey & Company, companies that have a tightly aligned GTM strategy are 2.3 times more likely to achieve above-average profitability compared to those that don’t. Furthermore, organizations with strong alignment between Sales and Marketing see a 32% higher year-over-year growth rate than those without .

The GTM Weekly Review: A Template for Success

To help your organization make the shift to the new GTM strategy, I’ve developed a simple but effective template for a “GTM Weekly Review” meeting. This template is designed to ensure tight alignment across all departments and keep everyone focused on the company’s overarching goals.

Embrace the New GTM or Get Left Behind

The evolution from the old GTM strategy to the new PEG-focused approach isn’t just a change in tactics; it’s a complete shift in mindset. In today’s market, where capital is constrained, and efficiency is king, the only way to succeed is by aligning your team around a cohesive, well-executed GTM strategy.

So, what’s it going to be? Will you cling to the old ways, hoping that another round of funding will solve your problems? Or will you embrace the new GTM strategy and build a business that’s not just profitable but built to last?

The choice is yours, but remember: In this new world, only the efficient survive.