Why it’s wrong: Optionality in the middle is worthless. Moving up requires integration depth, services capability, and enterprise sales motion that take years to build. Moving down requires rearchitecting for virality and zero-CAC economics. Neither pivot is easy, and runway runs out before either is complete.
“We just need to improve conversion rates.”
Why it’s wrong: Conversion rate optimization doesn’t fix structural problems. If the product doesn’t create lock-in or virality, better conversion just means acquiring customers faster who will churn just as fast.
“Enterprise is our next phase.”
Why it’s wrong: Enterprise isn’t a “phase” — it’s a different business entirely. Enterprise requires integration depth, services capability, security certifications, multi-stakeholder sales, and implementation teams. These take years to build. Companies that planned for enterprise from the start have 3-5 year head starts.
“Our technology is defensible.”
Why it’s wrong: Technology is not defensible in the AI era. Proprietary algorithms can be replicated. Custom models can be trained. Code can be generated. The only defensible positions are integration (embedded in customer operations) and data (proprietary datasets that improve with usage).
The Bottom Line
When you hear these objections, you’re looking at a middle-market company in denial. The structural forces don’t care about narratives. Pass.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
