The strategy secrets founders typically miss out on (and why they’ll change everything)
Let’s be honest—"strategy" has become a buzzword that people throw around without really understanding it. It's one thing to scribble down a few goals and feel good about it, but how often does that plan sit in your Google Drive collecting virtual dust? Here’s the thing: most founders don’t realize that a good strategy can shave years off your startup's timeline—yes, years.
In fact, startups with a clear, actionable strategy are far more likely to survive and thrive. In fact companies with a well-defined growth strategy significantly outperform those without one. Startups that focus on strategic resource allocation and clarity in their direction are much more likely to achieve high growth.
Deepdive: McKinsey & Company
How strategy really works for startups
A well-crafted strategy isn’t just about getting your ideas on paper—it’s about reducing uncertainty, managing risk, and making you think about things you’d otherwise ignore. In fact, founders who proactively engage in structured planning—whether it’s through registering IP, or focusing on core business priorities—are far more likely to achieve growth!
Not yet convinced?: MIT Sloan
It’s about making the right moves early and sticking to them.
Takeaway: Startups that focus on strategic resource allocation and clear actionable priorities in their direction, are much more likely to achieve high growth.
So let’s dig into why your startup’s strategy isn’t just a plan—it’s the difference between success and failure.
Your "value hypothesis" is probably wrong (AND THAT’s OK!)
You’re not just selling a product—you’re solving a problem. The thing no one tells you is that your initial assumptions about your customers are probably way off. Steve Blank, a renowned entrepreneur and startup guru from Stanford, coined the term “value hypothesis”—the idea that you need to test and constantly refine the core value you deliver to customers.
Why this matters: Your first value hypothesis will fail. Most of the initial customer needs and assumptions are wrong. Therefore, your strategy should focus on how to iterate fast.
No one told you this before? “Pivoting too late” is one of the top reasons startups fail.
But here’s the kicker—those who pivot and iterate effectively based on data, tend to survive longer! Companies that test and refine their business models early on are more likely to experience sustainable growth.
So when making your strategy plan – put in actions to test, iterate and pivot.
Takeaway: Startups that pivot tend to have better chances of long-term survival. The Startup Genome Report (here) also states that startups that pivot early and effectively are much more likely to scale—growing 3.6x faster than those that don’t pivot.
““Value hypothesis” is the idea that you need to test and constantly refine the core value you deliver to customers.”
Want to read even more?: We wrote this deep-dive on value hypothesis.
"Start with no" – if you can’t defend it, it’s not a strategy
This one’s a game changer. While everyone’s telling you to “say yes” to every opportunity, smart founders learn to embrace the art of saying no. Michael Porter from Harvard emphasizes that true strategy is about making choices. You can’t be everything to everyone. If your strategy doesn’t say what you won’t do, it’s not a strategy; it’s a wish list.
Takeaway: The more focused you are, the stronger your position. Limit your market—at least initially. Pick a niche. Dominate it.
Plan A, B and C – Yes, assume failure and plan for surprises
Bet no one told you this: even well-executed strategies fail. Research from the University of Virginia found that 70% of well-planned strategies still don’t deliver expected outcomes due to unforeseen variables. Build contingency plans into your strategy. What if your market is suddenly saturated? What if a competitor releases a similar product?
And, nobody tells you to plan for mental breakdowns, but let’s get real. Founders burn out fast. Harvard Business Review found that 25% of startup founders face burnout during their first two years. Your strategy should include personal well-being checkpoints. If you're not checking in with yourself now and again, you’re actually missing a key part of longevity.
“25% of startup founders face burnout during their first two years.”
Lastly, there's a number in the startup world that's bigger than profit margins—want to guess?
82% of startups fail due to poor cash flow management… not lack of revenue? Make sure your strategy revolves around maintaining healthy cash flow, not just earning money. Keep a tight grip on financial runway and expense forecasts. (Backup for this number? Become, Insights, Huntington Bank).
Takeaway: Plan B and C need to be just as strong as Plan A.
Final words of wisdom?
Your strategy isn’t set in stone—it’s a living, breathing framework that needs to evolve as you learn more about your market, customers, and even yourself. Planning isn’t just about knowing where you’re going—it’s about anticipating what could derail you and making sure you’ve got a path back on track when things go sideways.
Your strategy will evolve. So your strategy is a living document. Schedule strategy reviews every 3-6 months.
And, next time someone tells you to "just write out a plan," hit them with these little-known facts. Because while a startup’s success might seem like it hinges on great ideas or hustle, what really matters is whether you’ve mapped out the terrain—and packed for the trip.