Demand Accelerators' Blog

What Broke This Startup’s GTM Engine? A Cautionary Tale and How to Avoid It

Written by Derek Leith | Apr 21, 2025 6:21:49 PM

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Startups often look like success stories—until, suddenly, they don’t. Layoffs, reorgs, and executive churn can seem like random setbacks, but more often than not, they’re the result of deep, systemic breakdowns in how go-to-market (GTM) teams operate. Here’s a real-world story of what went wrong at one company, why it happened, and how you can spot the warning signs before your own revenue engine stalls.

The Story: Inside a GTM Breakdown

A few weeks ago, I spoke with a friend who’d just been laid off from a high-growth startup. The company had axed multiple roles, including central and AE (Account Executive) positions, while simultaneously hiring for others—classic signs of confusion at the top. But the real problems ran much deeper:

  • The BDR (Business Development Representative) Director was so frustrated with operational chaos that he felt relieved to leave.

  • Salesforce and sales operations were a mess, plagued by mismanagement and unqualified, inexperienced staff.

  • Marketing leads (MQLs) were being manually processed by a Chief Marketing Officer, who consistently got it wrong, distributing leads months late and throwing others under the bus.

  • Account Executives were misaligned: some wanted to farm existing accounts, but the company needed hunters. Meanwhile, key accounts were mishandled, with Wall Street accounts being sent to the wrong region.

  • Leadership was reactive, not strategic, and accountability was nowhere to be found.

The result? A toxic culture, missed targets, and a mass exodus of talent.

What Went Wrong: A Detailed Analysis

This story isn’t unique. Here’s what broke inside this company’s GTM engine:

  • Role Misalignment: Sales and marketing weren’t aligned. AEs wanted to farm, not hunt, and BDRs didn’t know where to focus.

  • Leadership Frustration: There was no strategic clarity from leadership, leading to finger-pointing and blame.

  • Sales Ops & RevOps Breakdown: Operational immaturity meant no process, no automation, and no clear ownership of outcomes.

  • Marketing-to-Sales Handoff Failure: Leads were processed manually and distributed late, with no automation or Service Level Agreements (SLAs) in place.

  • No AE/BDR Alignment: Incentives were misaligned, and there was no true accountability for roles.

  • Broken Culture: Weak executive leadership, lack of accountability, and a culture that rewarded blame over collaboration.

 

The Revenue Red Flag Checklist: 12 Signs Your GTM Engine Is at Risk

Use this checklist to pressure-test your own GTM system and spot issues before they become existential threats.

GTM Alignment

 AEs want to farm, but the role requires hunting
 Territory conflicts (shared or reassigned accounts)
 BDRs unsure who to support or what accounts they own

Marketing & Sales Disconnect

 MQLs are manually processed or delayed
 Event leads distributed more than a week after events
 No SLA or automation for lead handoff

Ops & Tech Trouble

 Salesforce errors, duplicates, or manual workarounds
 Sales Ops is reactive, lacks RevOps capabilities
 Pipeline reporting is delayed or disputed

Leadership & Accountability

 Blame is more common than collaboration
 Performance judged by anecdote, not data
 High performers feel unsupported or are already leaving

Score Yourself: How many boxes did you check? The more you see, the higher the risk

  • 0–3 Red Flags: You’re in good shape—keep the flywheel spinning.
  • 4–7 Red Flags: Time for a GTM tune-up.
  • 8+ Red Flags: You’re risking burnout, missed targets, and strategic failure.

How to Fix a Broken GTM Engine

If this checklist feels uncomfortably familiar, don’t wait for the next missed quarter or wave of resignations to act. Here’s how to get back on track:

  • Align Roles and Incentives: Ensure AEs, BDRs, and marketers have clear roles, aligned incentives, and shared goals.

  • Build Operational Maturity: Invest in experienced sales ops and RevOps leaders who can design and enforce scalable processes.

  • Automate Lead Management: Implement automated lead handoff with clear SLAs to eliminate manual errors and delays.

  • Foster Accountability: Replace blame with data-driven performance management and regular cross-functional reviews.

  • Strengthen Leadership: Demand strategic clarity and ownership from executives—and don’t tolerate finger-pointing or abdication of responsibility.

Conclusion

The quiet chaos inside fast-growing startups isn’t inevitable. By spotting the red flags early and addressing them head-on, you can build a GTM engine that’s resilient, aligned, and ready to scale.