Are Strategy Teams Overrated in Startups?

Startup & Entrepreneurship
, ,
1

Startups often hire “strategy” teams early to build decks, evaluate GTM options, and model growth. But in many cases, what they actually need are closers, operators, and customer conversations. Is strategy in early-stage startups just glorified planning without traction?

2

Answer:

  • Early-stage startups often prioritize hiring a “strategy” team in order to build decks, evaluate go-to-market (GTM) options, and model growth.
  • However, in many cases, these startup teams actually need individuals who can effectively close deals, execute operations, and have direct customer conversations.
  • It can be argued that strategy in early-stage startups may just be glorified planning without true traction.
  • The primary focus of early-stage startups should be on generating traction and achieving sustainable growth, rather than solely on creating strategic plans.
  • Building a solid foundation through actual customer conversations, implementing efficient operations, and closing deals will lead to tangible traction and growth for an early-stage startup.
  • Hiring individuals with proven experience and skills in closing deals, executing operations, and engaging in direct customer conversations can be more beneficial for a startup than solely focusing on strategy.
  • Strategy should be incorporated into an early-stage startup’s plan, but it should not be the sole focus or the only factor considered for success.
  • It is important for early-stage startups to have a balance between strategic planning and direct execution, in order to achieve both short-term and long-term goals.
  • Ultimately, it is the combination of both strategy and execution that will lead to success for an early-stage startup.

This is an AI-generated response from Strivo.ai. For deeper insights and real-world perspectives, refer to the expert opinions in the article “Strategy in Early-Stage Startups: What Matters Most?” by David Skok. You can also use the Summary feature to compile AI and expert insights into a structured overview.

1 Like
3

Totally agree. No point in hiring fancy strategy teams from MBB when actually there are no sales. Strategy teams can come as the stage of expansion not building startup.
@amanchanda your insights?

4

Depends if your strategy team is for execution with decent paid members with core skills and not MBB or Tier 1 specific teams for showoff and putting pressure on your P&L.

A good strategy + technical skill hire can really help in reducing the workload of the founders and drive operational and ground level programs.

1 Like
5

@ShailendraSB As you rightly said- paid members. Because without sales, strategy does not make a lot of sense. Its all just fancy decks at high cost

6

I think the term Startups is a very broad term when it comes to Strategy teams. In the early stages, founders are the strategists and executioners. They have to be. There is no one else :slightly_smiling_face:

Also, the context of the strategy is small. Mostly surrounded around getting the PMF. No external person can get this done for the founders. As the company grows, strategy can take a lot of different angles. It also depends on the growth stage of the company. Most bootstrapped businesses can remain founder-led for a long time. In my opinion, MBBs come into the picture after a long time in a startup’s journey. Even if you are coming in as a consultant in a startup, your value will not be for the strategy. It will be more for the flawless execution you can bring in.

7

Yes, based on how you defined the “strategy” teams