← back to writing

Most Startups Don't Have a Growth Problem—They Have a Clarity Problem

• 11 min read

Most Startups Don't Have a Growth Problem—They Have a Clarity Problem: Here's a pattern I keep seeing: A startup hits a plateau. The dashboard looks flat.

Here's a pattern I keep seeing:

A startup hits a plateau.
The dashboard looks flat.
Growth has "stalled."

So they try everything:

  • Rework the pricing page.
  • Spin up a paid campaign.
  • Fire the VP of Marketing.
  • Redesign the onboarding flow.
  • Build "just one more" feature.
  • Pivot to a new market segment.
  • Slash prices to boost conversion.
  • Hire expensive consultants.
  • Rebrand (again).

But nothing moves the needle. The trajectory remains stubbornly horizontal.

Everyone talks like it's a growth problem.
It's not.

The Growth Illusion

Let's get uncomfortable for a second.

Most early-stage startups aren't really ready to grow. Not because they lack hustle or funding or good engineers—but because they haven't nailed what they're actually growing.

When you examine the most spectacular failures in startup history—from Quibi to WeWork to Theranos—underneath the drama and capital destruction lies a fundamental clarity deficit. They poured rocket fuel into engines that weren't pointed in a coherent direction.

Before you think about growth, you need clarity. And most startups are flying blind.

What do I mean by clarity?

Defining the Clarity Problem

Clarity isn't about having a killer slide deck or a snappy one-liner. It's about knowing—deeply, confidently, repeatedly—the answers to a few hard questions:

  • Who is your exact customer? Not "small businesses" but "independent financial advisors with 50-200 clients who are frustrated by compliance paperwork."
  • What pain are they feeling? Not "inefficiency" but "spending 15 hours weekly on client documentation that could be automated."
  • Why is your solution uniquely better? Not "AI-powered" but "reduces compliance documentation from 15 hours to 2 hours weekly while decreasing audit risk by 70%."
  • What words do your best customers use to describe you? Not your marketing team's clever phrases, but the literal language your champions employ when recommending you.
  • Where does your product fit in their day, their stack, their psyche? Is it morning fuel or evening relaxation? Mission-critical or nice-to-have? Pride-inducing or merely functional?

Clarity means your value proposition survives contact with a stranger.

Clarity means your homepage doesn't need a tour guide.

Clarity means your entire team can explain what you do in one breath, and it lands.

How Lack of Clarity Shows Up (and Screws You Over)

You don't need to hang a sign that says "We're fuzzy on the fundamentals."
Your startup will broadcast it in other ways:

1. Unfocused Product Development

This is when your roadmap looks like a buffet:

  • A little for SMBs
  • A feature for the enterprise pilot
  • A dashboard revamp for that one customer who churned
  • An integration because a competitor has it
  • A mobile app because investors asked about it
  • A marketplace feature because it "could be huge"

Instead of compounding toward a clear, defensible product vision, you're just reacting. You're solving loud problems, not core ones. Your roadmap resembles a game of Whac-A-Mole rather than a strategic advance.

Consider Clubhouse's trajectory: After explosive growth, they lost focus trying to serve both casual users and creator economies simultaneously. Without clarity on their core value and primary audience, feature development scattered, and they lost momentum to more focused competitors like Twitter Spaces.

2. Scattered Marketing Messages

Your website says one thing.
Your ads say another.
Your sales deck is a third species entirely. Your customer success team has their own interpretation. Your CEO pitches something completely different to investors.

This isn't just confusing—it's fatal. Because customers aren't parsing every asset. They're glancing. And if the story shifts with every scroll, they bounce.

The human brain craves consistency. When your messaging fragments across channels, you create cognitive dissonance. This doesn't just reduce conversion—it actively builds distrust.

Take Peloton's early days versus now. Initially, they had crystalline clarity: premium home fitness equipment with world-class instructors, available on demand. As they've expanded into apparel, different equipment categories, and various subscription tiers, their message has diffused—and their growth has followed suit.

3. Targeting Too Broad an Audience

If your ICP is "anyone who uses email" or "teams of 5 to 5,000," stop.

Startups die from dilution. When you try to appeal to everyone, no one feels like you're for them. The psychology is simple: humans want to feel chosen, not incidental. We connect with brands that seem to understand our specific circumstances.

Consider these contrasting approaches:

Diluted: "Our project management software works for everyone from freelancers to Fortune 500 companies!"

Clarified: "Project management designed specifically for distributed creative agencies juggling 15+ concurrent client projects."

The first might seem to open a larger market, but it actually closes doors—because no one feels seen. The second might seem limiting, but it creates magnetic pull for a specific audience who will champion your product.

Look at Substack's early traction—they didn't target "writers" broadly. They focused relentlessly on independent journalists and commentators with established audiences looking to monetize directly. Only after dominating that niche did they expand.

Clarity means saying no. Picking a side. Losing some customers to win others deeply.

4. Misalignment Between Teams

Sales is selling speed.
Marketing is selling simplicity.
Product is building depth.
Support is just trying to keep up. Engineering is optimizing for elegance. Finance is pushing for margin.

If everyone's rowing, but in different directions, you're spinning.

This misalignment manifests in countless ways:

  • Sales promises features that aren't on the roadmap
  • Marketing highlights benefits the product doesn't actually deliver
  • Product builds capabilities no one is selling
  • Support develops workarounds that shouldn't be necessary
  • Engineering refactors systems while customers need stability

I've seen startups where the marketing team positions the company as "enterprise-grade" while the product team builds with a consumer-first mindset. The result? An enterprise sales cycle that ends in disappointment because the actual product lacks the governance, security, and scalability features enterprise buyers expect.

Clarity aligns the oars. It's the only way to build real momentum.

5. Inability to Explain What You Do—Concisely

Ever pitch your product and end with, "...does that make sense?"

Yeah. That's the clarity alarm going off.

If it takes more than two sentences to explain what you do, you're either:

  • Still figuring it out
  • Too close to it
  • Or trying to do too much

I once spoke to a fintech startup that had raised millions but couldn't explain their product without a 15-minute presentation. Their team meetings became exercises in interpretation: "So what Mark means is that we're actually building..."

After three months of user research and internal alignment sessions, they distilled their value to: "We help independent restaurants increase profits by 15% through automated inventory and purchasing." Suddenly, sales conversations transformed—prospects got it immediately and wanted to know how, not what.

Think about how the iPhone was introduced: "An iPod, a phone, and an internet communicator." Clear, compelling, complete. No confusion about what problem it solved or who might want it.

Either way, it's time to simplify until it sings.

What Clarity Feels Like (When You Finally Have It)

  • People nod within the first 10 seconds of hearing your pitch.
  • Your product decisions suddenly get easier.
  • Customers repeat your exact phrasing back to you.
  • You stop trying to "convince" and start just showing up.
  • Your NPS improves without changing the product.
  • Sales cycles shorten without changing the price.
  • Team meetings become more efficient.
  • Recruitment gets easier as candidates self-select.
  • Strategic partnerships materialize because complementary businesses understand your niche.
  • Investor conversations shift from explaining what you do to how big it can become.

When Airbnb clarified their position from "air mattresses in strangers' homes" to "belong anywhere," everything accelerated. The product didn't fundamentally change overnight, but the clarity of purpose united their team, resonated with customers, and created a North Star for decision-making.

Clarity makes growth possible.
Confusion makes growth expensive.

The Trap: Mistaking Movement for Progress

Here's the seductive thing: you can be busy—wildly busy—without being clear.

You can raise money, get press, hire a team, even sign some logos... all while skating on top of a foggy foundation.

But that fog gets heavier over time. It slows everything down. Adds friction to every hire, every pitch, every roadmap decision.

I've gotten the after-action from board meetings for Series B companies where the exec team still debates fundamental questions like "who is our ideal customer?" or "what's our core differentiation?" Meanwhile, they're burning $800K monthly trying to grow something they haven't defined.

Modern startup culture exacerbates this problem. The pressure to show "hockey stick growth" tempts founders to pursue vanity metrics instead of clarity. It's easier to juice signups through discounts and aggressive marketing than to pause and ensure you're building something people genuinely need and comprehend.

Consider MoviePass's spectacular flameout. Their 9.95unlimitedmoviesubscriptiongeneratedexplosivegrowthbutobscuredafatalclarityproblem:theyhadnoviablebusinessmodel.Theyconfusedrapiduseracquisitionwithproductmarketfit.Theresult?A9.95 unlimited movie subscription generated explosive growth but obscured a fatal clarity problem: they had no viable business model. They confused rapid user acquisition with product-market fit. The result? A 300M loss and bankruptcy.

The Fix: A Clarity Intervention

Here's a lightweight clarity checklist I use with startups I advise:

1. Talk to 10 customers — not surveys, not product analytics. Real conversations. Ask:

  • Why did you buy?
  • What almost stopped you?
  • What other options did you consider?
  • If our product disappeared tomorrow, what would you do?
  • If you were explaining us to a colleague, what would you say?

Record these conversations (with permission). Listen for patterns in language, hesitations, enthusiasm. The gold isn't just in what they say but how they say it.

One SaaS founder I worked with discovered that customers weren't buying for his marquee AI features—they were buying because his product integrated seamlessly with their existing workflow. This insight completely reoriented their messaging and development priorities.

2. Rewrite your homepage headline — until a stranger could read it and say, "Ah, I know exactly what you do, and who it's for."

Then test it. Not with friends who know your vision, but with people in your target demographic who've never heard of you. If they can't articulate your value proposition after 30 seconds on your site, you're not clear enough.

Compare these real headlines:

  • "A better way to work" (vague, forgettable)
  • "Customer service software for customer-first teams" (clear audience, clear purpose)

The second isn't just more descriptive—it's self-qualifying. The right prospects lean in; the wrong ones move on. That's clarity working for you.

3. Pick your "one person" — the archetype customer you're building for. Give them a name, a job, a pain point. Build for them obsessively.

This isn't just a persona exercise—it's decision infrastructure. When debating features or messaging, ask: "Would Sarah care about this?" It cuts through opinion and ego.

Notion began with a clear focus on power users—people who wanted customization and integration beyond what existing tools offered. They didn't try to replace Microsoft Office for everyone; they focused on users who found existing tools too rigid. That clarity allowed them to build fanatical early adoption.

4. Do the 1-line pitch test — if everyone on your team says a different version, you're not there yet.

Gather your team. Ask each person to write down your company's one-line pitch. Collect them anonymously. Read them aloud. If they diverge significantly, you've discovered your core problem.

I've ran through this exercise with a 20-person startup and received 12 distinctly different descriptions of what the company did. The founder was shocked—he thought everyone was aligned. Within a week, they paused feature development to realign on fundamentals.

5. Cut 30% of your roadmap — then ask, "Would this still delight our one person?"

Feature bloat is often a symptom of clarity deficiency. When you're unsure who you're serving or what problem you're solving, you try to solve everything.

Basecamp famously operates with a small feature set compared to competitors. That discipline comes from clarity about who they serve and what problem they solve. They've repeatedly declined to add features that would expand their market but dilute their focus.

6. Map your customer's journey — not your sales process, but their experience from pain point to solution.

Where do they start? What triggers their search? What obstacles do they face? What competing priorities distract them? How do they define success?

Understanding this journey reveals critical messaging moments and product priorities. It helps you speak to customers at the right time, in the right way, about the right benefits.

One B2B startup I advised discovered their buyers weren't searching for their technical category at all—they were seeking solutions to adjacent problems. This completely changed their SEO and content strategy, leading to a 3X increase in qualified leads.

Clarity Isn't Sexy. It's Survival.

Growth feels exciting. Clarity feels... slow.

But here's the truth:

If growth is a rocket, clarity is the launchpad.
Without it, you're just burning fuel sideways.

The startup landscape is littered with companies that achieved impressive growth metrics without clarity—only to collapse when market conditions changed. They built on sand. When the tide shifted, they washed away.

Consider WeWork: spectacular growth, but fundamental clarity problems about their business model and unit economics. The result? A valuation that plummeted from 47billionto47 billion to 4 billion.

Contrast this with Mailchimp, which maintained clarity about serving small businesses for 20+ years. They resisted pressure to move upmarket prematurely. The result? A $12 billion acquisition without ever taking venture funding.

Before you chase distribution hacks or CRO tricks or go hire a growth marketer—check the foundation.

You might not have a growth problem.

You might just need to get clear.

The Courage to Choose

Ultimately, clarity requires courage. The courage to focus on some customers and not others. The courage to solve specific problems exceptionally well rather than many problems adequately. The courage to say what you're not.

In the face of uncertainty, we often hedge. We keep options open. We use vague language. We avoid commitment.

But customers don't buy hedges. They buy conviction.

Every truly transformative company started with crystalline clarity:

  • Uber: "Push a button, get a ride."
  • Stripe: "Payments infrastructure for the internet."
  • Airbnb: "Book unique homes and experiences."

These weren't just taglines—they were organizing principles that guided thousands of decisions. They created what Andy Grove called "clarity of direction," which allowed these companies to move fast without chaos.

The Clarity Paradox

Here's the counterintuitive truth: constraints create creativity. Limitations spark innovation. Focus expands possibility.

When you narrow your target customer, you deepen your understanding of their needs. When you commit to solving one problem, you discover adjacent opportunities. When you clarify your message, you attract customers who truly value what you offer.

The most successful startups aren't trying to boil the ocean. They're dominating puddles, then ponds, then lakes, and eventually seas.


Want help doing that? Start by asking your team:
"In one sentence, who do we serve, and why are we better?"

If the answers differ, you've found your bottleneck.

Good news? Now you can fix it.

And remember: clarity isn't a one-time achievement—it's an ongoing practice. As you grow, new confusion will emerge. Markets shift. Teams expand. The world changes.

Return to these clarity practices quarterly. Make them part of your operating system, not just a crisis response.

Because in the end, sustainable growth doesn't come from hacks or hustle.

It comes from uncommon clarity about common problems.

share

next up