How Top Portfolio Companies Overcome Revenue Scaling Challenges: Ajay Joshi and Brian Gustason’s LinkedIn Live Discussion
In a recent LinkedIn Live event, Craig Group partners Brian Gustason and Ajay Joshi shared their insights on what it takes to scale effectively in today’s competitive environment. Focusing on revenue growth, go-to-market strategy, and leadership alignment, they provided actionable advice for private equity executives and portfolio company leaders.
The Challenges of Scaling Revenue Growth
The conversation kicked off with a discussion about the struggles PE-backed businesses face in achieving sustainable revenue growth. Joshi highlighted that many companies were set up with high expectations following a post-pandemic boom, leading to overly aggressive growth plans. However, as the market shifted, companies found themselves in a tougher environment where customer acquisition costs skyrocketed, and prior assumptions about growth became unrealistic.
One major pitfall Ajay identified was the “growth at all costs” mentality. Many businesses invested heavily in sales and marketing without a clear understanding of return on investment. The result? Increased spending but diminishing returns. Instead, companies need to focus on efficient growth by clearly defining their ideal customer profile (ICP) and ensuring their go-to-market strategies are aligned with real market demand.
Early Warning Signs of a Struggling Go-To-Market Strategy
Another topic discussed was key indicators that suggest a company’s go-to-market strategy is hitting its limits. The most obvious sign is missing revenue targets, but other red flags included: increased spending on sales and marketing without measurable results, investments in technology (like CRM systems) that don’t improve sales outcomes, and misalignment between departments, leading to inefficiencies and siloed decision-making.
Ajay emphasized that businesses often misdiagnose their challenges. For example, a company experiencing declining sales may assume the issue is with its sales team when, in reality, the root cause could be outdated marketing messaging or a misaligned target market. He stressed the importance of diagnosing the core issue rather than just treating symptoms.
The Role of a Chief Revenue Officer (CRO)
Many PE-backed businesses consider bringing in a Chief Revenue Officer (CRO) to drive growth. However, Ajay cautioned that hiring a CRO too early—or without the right infrastructure in place—can lead to failure. The ideal time to bring in a CRO is when a company is ready to scale with well-established systems and processes, not when it’s still trying to determine product-market fit.
Additionally, Brian pointed out the difference between a “builder” and a “grower.” A builder thrives in an environment where systems need to be developed from scratch, while a grower excels at scaling an existing framework. Hiring the wrong type of leader can hinder a company’s growth trajectory.
Rethinking Lead Generation in a Competitive Market
Looking ahead to 2025, Brian and Ajay discussed the evolving landscape of lead generation. While automation and AI have become prevalent, they argued that businesses must refocus on relationships and personalized engagement. Brian and Ajay agreed that the keys to success will be a deep understanding of customer pain points, building trust through genuine interactions, and implementing an omnichannel approach to reach prospects in meaningful ways.
Ajay warned against the temptation to take on any customer just to drive short-term revenue. Instead, companies should be disciplined in targeting customers that fit their ICP to ensure long-term, sustainable growth.
Prioritizing Go-To-Market Initiatives
With numerous competing priorities, how should PE-backed businesses decide what to focus on first? Ajay recommended evaluating initiatives based on impact and feasibility. Companies should invest in foundational improvements—such as aligning sales and marketing, improving CRM utilization, and refining their ICP—early in their growth cycle to avoid firefighting later on.
When to Bring in External Experts
Lastly, Brian and Ajay highlighted the importance of engaging external experts before problems escalate. Many companies wait until they’re in crisis mode before seeking outside help, but early intervention allows for proactive growth planning. Whether it’s a light-touch assessment or a full-scale go-to-market overhaul, bringing in experienced consultants can provide valuable perspectives and accelerate results.
Want to hear the full discussion?
