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GTM Profitability Triage: Where to Cut vs Double Down for Sustainable Growth

Author

Chintankumar Maisuria
August 18, 2025

In partnership with

Read time: 5 minutes.

Welcome to the 146th edition of The Growth Elements Newsletter. Every Monday and sometimes on Thursday, I write an essay on growth metrics & experiments and business case studies.

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Growth vs profitability dilemma paralyses most SaaS founders.

Cut too much, kill growth momentum. Double down wrong, burn through runway chasing vanity metrics.

Surgical GTM optimisation beats broad budget cuts every time.

[1] Why Broad Cuts Kill Growth

When facing profitability pressure, most companies slash spending across all channels:

  • Marketing budget cuts: 30-50% reduction across paid acquisition, content, events

  • Sales downsizing: 20-40% headcount reduction

  • Operations freezes: All new tools and hiring are paused

  • Product slowdown: R&D cuts, delayed features

The result? 67% of companies using broad cuts see revenue decline within 6 months.

[2] GTM Profitability Framework

Phase 1: Channel Performance Triage (Week 1-2)

  • Calculate true CAC and LTV for each channel across multiple cohorts

  • Separate channels by payback period: <6 months, 6-12 months, >12 months

  • Identify which channels drive the highest retention and expansion

Phase 2: Activity-Based Profitability (Week 3-4)

  • Map every GTM activity to revenue outcomes within 90 days

  • Calculate the cost per qualified opportunity by channel

  • Measure sales cycle length and close rates by source

Phase 3: Strategic Cuts vs Doubles (Week 5-6)

  • Cut: Channels with >18 month payback or negative LTV

  • Double: Channels with <6 month payback and expanding ROI

  • Optimise: 6-12 month payback channels through process improvement

[3] Cut vs Double Down Decision Tree

Immediate cuts (within 30 days):

  • Channels with >24 month payback periods

  • Activities consuming >10% of the budget but driving <3% of the revenue

  • Team members missing quota for 2+ consecutive quarters

  • Tools with <40% adoption rates

Strategic doubles (within 60 days):

  • Channels with <6 month payback and expanding unit economics

  • Sales activities with >20% close rates and growing deal sizes

  • Marketing programs are driving leads at <50% of the average CAC

  • Features increasing expansion revenue by >25%

[4] Common Patterns That Work

Typical cuts:

  • Trade shows with low acquisition rates

  • Generic content with minimal qualified traffic

  • SDR programs targeting poor unit economics segments

  • Underperforming paid social channels

Typical doubles:

  • Organic channels showing consistent pipeline generation

  • Referral programs with expanding rates

  • Direct sales focus on higher-value segments

  • Product-led growth investments in onboarding

[5] Weekly GTM Review Cadence

  • Monday: Channel performance and weekend conversion data

  • Wednesday: Pipeline quality and sales cycle progression

  • Friday: Resource allocation planning for next week

No monthly delays. No quarterly paralysis. Weekly data-driven optimisation.

[6] Profitability Timeline

Month 1-2: Surgical Cuts

  • Eliminate negative ROI activities immediately

  • Reduce spending in declining channels

  • Consolidate overlapping functions

Month 3-4: Strategic Doubles

  • Increase investment in the highest-performing channels

  • Hire in proven ROI areas

  • Expand successful programs

Month 5-6: Process Optimisation

  • Implement efficiency improvements

  • Test new approaches with small budgets

  • Optimise conversion rates in high-performers

[7] Final Insight

Profitability doesn't require killing growth; it requires killing inefficient growth.

The companies that survive don't cut everything; they cut precisely and double down strategically.

  • Measure unit economics by channel, not aggregate growth

  • Cut negative ROI activities immediately

  • Double down on efficient channels before optimising marginal ones

That's it for today's article! I hope you found this essay insightful.

Wishing you a productive week ahead!

I always appreciate you reading.

Thanks,
Chintankumar Maisuria