As we enter Q4, many startups get caught up in the whirlwind of annual planning and closing out the year. I see companies go into survival mode as the year winds down, thinking that Q4 is a time to simply hold on, regroup, and hope for better momentum in the new year. But here's a little secret: Q4 can be one of the most valuable times to unlock quick wins that set the stage for major growth in Q1. It’s not too late to make an impact, but the key is focusing on the right moves.

Effective annual planning requires focus and expertise, and is a capability that needs to be built and developed over time.  When done well, the process results in strategic focus and operational alignment. However, when companies miss the mark, planning feels disjointed and distracting—even painful. One way to de-risk your planning sessions is to work with an external partner.

Along the venture journey, many founders will succumb to self doubt, mistakenly trading away the things that make their startup special in the hopes that it will bring financial results. Founders must reverse this thinking. Long-term financial success stems from disciplined execution that aligns with the Founder vision and the startup's soul. Founders and their teams must find ways to balance all three, as compromising one for the other is more likely to hinder long-term success than to buoy short-term distress.

Many startups recognize the importance of key financial metrics like Contribution Margin, CAC, and CAC Payback Period. However, they often stumble when it comes to calculating these figures accurately, viewing them more as formalities than essential tools for operating a scaling business on a daily basis. Precision and a deep understanding are crucial. This can be challenging, especially without a seasoned team. At Virgo Strategic, we partner with startups to refine these metrics and build them into your operational decision-making, transforming insights into actions that drive profitability.

It's time for a decisive shift in mindset - a move away from the traditional 'growth first, profit later' ethos, now viewed as an outdated paradigm incompatible with today's competitive landscape. Our message to founders and CFOs is unequivocal: unit profitability is not just a metric; it's the bedrock upon which sustainable growth and long-term success are built.

After a decade of operating, most recently as COO & CFO of pymetrics, and 5 years of helping first-time founders and CFOs on the side, I’m building a new team to resolve a critical skill gap in the early-stage market: surviving the early-to-growth transition.