top of page
Search

Hey Founder: Maintaining Functional Balance is Your Full Time Job...

  • Writer: Malcolm De Leo
    Malcolm De Leo
  • 7 hours ago
  • 11 min read


Building something new in the age of AI is a funny thing. The efficiencies being created are so ridiculously powerful that sometimes it feels hard to even breathe, let alone keep up. Gone are the days where inefficiency could quietly exist while companies slowly adjusted to the market around them. Now, every single day feels like a fight to make sure you aren’t being outpaced by someone leveraging technology better than you are.


Frankly, it can feel like it’s AI or die. Everywhere we look, processes that once took teams of people can now be scoped, refined, and completed with a technological brain partner sitting right beside us. And because of that, there’s this growing narrative that if you don’t embrace the change immediately, you’ll inevitably be left behind.


I suppose there isn’t much left to say then. We should all just grab the plug like Cypher in The Matrix, jack back into the system, and happily eat our perfectly generated digital steak forever pretending this technologically manufactured world is normal.


But honestly, most of that is horseshit.


Sure, AI is making it easier than ever to replace labor-intensive processes with technology. That much is true. But businesses are still run by people. Teams are still people. Customers are still people. And inside every company there remains a human balance, a cultural reality, that technology alone cannot solve. A friend once told me something years ago that still sticks with me: companies don’t innovate, people do. And despite all the noise surrounding AI, I still believe that remains true.


So what does all this actually mean?


Over the years, while desperately trying to understand what makes startups succeed or fail, I’ve found it useful to think about business from the balcony instead of the dance floor. When you stand on the balcony, you can see the motion of the room. You can see where momentum is building, where people are colliding, and where things are quietly falling apart. But when you lead only from the dance floor, all you really see are the bodies thrashing around you trying to be noticed.


And here is the simple truth: as you build from ZERO to SUCCESSFUL, thinking about your business as a scale constantly wavering back and forth is a mental model that can save you an enormous amount of pain. Because building a company isn’t about standing perfectly still. It’s about constantly balancing competing forces without letting the whole thing tip over.


What is the “scale” a founder is continuously balancing?


Well, for most technology companies, founders believe that if they build a great technology, turn it into a product, and attach it to a real consumer need, then eventually it ends up on the internet where scaling becomes this magical thing. People swipe their credit card, money shows up while you sleep, and you peacefully dream about your future life sitting on a beach in Tahiti.


Sadly, the number of times this actually happens is about as frequent as getting struck by lightning while holding a winning lottery ticket.


Sure, these visionary dreams are often a founder’s true north. They are the thing pulling us forward through the chaos. But the day-to-day reality of building a company is much messier than the fantasy we pitch ourselves in the shower every morning.


There are a thousand places to focus as a founder. Trust me, I’ve learned this the hard way. But one of the most important mental models I’ve built for myself is actually pretty simple.


Think about a scale with two sides. Got it? Good. (Or just look at the picture above because frankly it explains it pretty well.)


Now imagine one side of the scale is the “front of the business” and the other side is the “back of the business.” I use these terms because they are exactly what they sound like.


So let’s start with the front of the business.


The “front of the business” is the consumer-facing side of your company. And to keep things simple, I think about it as three primary functions: Sales, Marketing, and Customer Success. Sure, there are plenty of other functions you could layer in there, but when you are first getting started, you are probably doing all of this yourself anyway. These are the fundamentals. You must sell the product. You must market the product. And you must manage your customers well enough that they actually stay customers.


You’ll also notice the order I put them in: Sales first, Marketing second, Customer Success third.


Why?


Sales comes first because they are directly interacting with customers every single day. Sales is how the business closes revenue. They are the tip of the spear.


Marketing comes second because their job is to articulate value across a variety of channels in order to create opportunities for sales to engage. Yes, product-led growth exists. Yes, people buy products without talking to a human. But even PLG is still selling. It’s just your customer interacting with systems, messaging, workflows, and experiences that ultimately convince them to swipe the credit card.


Customer Success sits closest to the center of the scale.


Why?


Because while Customer Success absolutely helps expand accounts and drive additional revenue, their real superpower is that they live closest to the actual user experience. They are the connective tissue between the front and back of the business. Their job is to deeply understand customer use cases, identify friction, gather feedback, and communicate those realities back into the core of the company so the product actually gets better over time.


Yes, Sales hears things. Marketing hears things too. But Customer Success is maintaining the heartbeat of the existing customer base every single day, and because of that they often see the truth before anyone else does.


Now let’s talk about the back of the business.


The “back of the business” is the technical-facing side of your company. And again, to keep things simple, I think about this side as three primary functions: Data Science, Engineering, and Product. Sure, there are plenty of additional functions you could layer in there, but at the end of the day you need someone creating the math that enables the thing to work, someone building the infrastructure that actually runs it, and someone capable of turning all of that technical complexity into an experience human beings can understand and apply to a real problem they care about solving.


Data Science sits first because they are doing the most theoretical work in the company. They are the mathematical guts of what makes your product unique, differentiated, and valuable. These days especially, data scientists are constantly finding wild and creative ways to take insanely theoretical concepts and simplify them into something practical enough for the rest of us to actually use.


Engineering sits second because, frankly, it should be pretty obvious why. They are the people responsible for making all those 1’s and 0’s actually do something useful. They build the infrastructure, manage the processing, make sure the product scales, and hopefully ensure the whole thing doesn’t light itself on fire every time a customer clicks a button.


And then there is Product.


Product sits nearest to the fulcrum of the scale because they are the interface between technical possibility and human usability. Their job is to take all the math, infrastructure, databases, workflows, APIs, and technical chaos flowing through the back of the business and shape it into something that a normal human being can actually understand how to use against a real business pain.


In that sense, Product sits very much like Customer Success does on the other side of the scale. Both functions live closest to the middle because both are translators. One translates customer pain into product insight, while the other translates technical capability into customer value.


So what's the point of all this "scale" talk?


When I talk about scale, I guess this model is a bit of a double entendre for growing your business. So yes, in one sense the scale is the balance you need to maintain if you actually want to scale your company and grow.


What I have learned as a founder is this...building a business is really just a constant balancing act. There are so many variables that need to stay in harmony if growth is going to happen. You are chasing product market fit, hiring people, developing the product, building the moat, getting revenue in the door, keeping customers happy and the list just goes on and on.


Frankly, sometimes it feels like spinning 15 plates at the same time while someone keeps handing you more plates.


So this post is really about simplifying it. And I mean really simplifying it.


As you are building your business ask yourself one very simple question...


Is the front of the business the problem or is the back of the business the problem? If its the front of the business, the scale tips towards left towards the back. Why? Because they are pulling their weight. If it's the back of the business' issue the scale tilts right toward the front. It's a simple mental model.


Don't worry about all the details. Just think at the highest level. Is the front of the business bringing in customers but the back of the business can't deliver the value they expected? Or have you built a kick ass product that nobody cares about because the front of the business can't explain it, market it or sell it?


See...very simple.


What I have noticed is that this front/back balancing act constantly tilts one way or the other depending on where the company is in its journey. And it is imperative that founders recognize when that tilt is happening so they can stay ahead of the problem before they get a visit from our old friend Financial Death.


I find these simple rules of thumb are one of the easiest ways to process challenges before they become real problems. Because your job as a founder is really to keep the scale as balanced as possible. And interestingly enough, balance is what often creates growth.


In my experience, when the front and back of the business are aligned, you usually hit this moment where the market starts responding correctly. Customers understand the value. The product delivers what was promised. The business gains momentum and you get the chance to learn what needs to happen next in order to keep going.


And when growth stalls? More often than not, it is usually a sign the balance is off somewhere.


The picture below highlights the balancing battle founders fight every single day.





So how do you recognize the issues and what do you do about them?


Front of the business stuff


Customers renew but closing takes too long


A very obvious front of the business problem happens when your current customers love what you are doing, but new customers take forever to close. Usually this means the messaging is off somewhere. The product may be valuable, but sales and marketing are not really connecting to the market pain in a way that makes people immediately understand why they should care.


In this case, the scale is leaning toward the back of the business. The product may work, but the front of the business is struggling to articulate the value clearly enough to accelerate growth.


You have lopsided closing from sales people


If only a few sales people are consistently closing deals while others struggle badly, then yes, you probably have a talent problem. The market is clearly biting, just not evenly. This means you need to evaluate the people, the process, or both.


Sometimes this happens because one person knows how to sell the vision while others are simply pitching features. Other times it means your sales process only works when a highly talented person is driving it manually like some sort of sales wizard holding the whole thing together with duct tape and charisma.


Neither of those are scalable.


You are closing business but you aren't filling the top of the funnel


This is another classic front of the business issue. Revenue is growing, but mostly through less scalable motions like founder selling, relationship selling, or pure networking hustle. In other words, the business is surviving because people know you, not because the machine is working.


This usually means the process on the front end is wrong. Marketing isn't creating enough inbound interest, the messaging isn't landing consistently, or your lead generation engine simply isn't mature enough yet.


Founders mistake this for growth all the time because revenue is coming in, but the scale quietly starts leaning before they realize it.


Customers don't renew because the work alone doesn't win the day


This one is subtle and honestly happens way more than people want to admit.


Too many Customer Success teams believe that if they simply deliver the work they were asked to do, everything will magically be fine. But retaining and growing accounts requires much more than delivery. It requires partnership management, customer support, strategic alignment, trust building, and making your product culturally penetrate the customer’s workflow.


And by cultural penetration, I mean your solution becomes part of how they naturally operate every day.


Because if your product is merely "a thing they bought" instead of "the way they do business now," you are vulnerable.


This is usually a sign Customer Success is not fully understanding the scalable use cases customers actually care about long term.


While all of these examples seem obvious individually, the scale model forces you to view them as one unified front of the business problem with multiple faces. If the product is genuinely good and performing well, but growth is stalling, then the issue may not be the product at all. It may be the process, the strategy, or the people operating the front of the business.


Back of the business stuff


The use cases are promising but not good enough


A very subtle back of the business issue happens when sales can successfully sell a compelling use case, customers buy into the vision, but once they start using the product the value simply doesn't fully materialize.


Sure, customers can absolutely have unrealistic expectations sometimes. We have all dealt with that. But there are also moments where the product just isn't delivering the magic the customer believed they were buying.


This is the scale leaning toward the front of the business. The promise is outrunning the product reality.


You can't articulate the moat


When you are selling something new, customers need to quickly understand why you are different.


I have seen plenty of technical teams pat themselves on the back believing they built something revolutionary, while the customer stares blankly wondering why any of it matters.


Here is the hard truth: if the customer cannot clearly understand your unique consumer perceivable benefit, then your differentiation effectively does not exist.


Your moat must be obvious.


Maybe it is functionality.

Maybe it is speed.

Maybe it is workflow simplification.

Maybe it is cost reduction.


But customers need to quickly understand why you are not just another version of the same old thing.


The product doesn't work


Sorry...this one is dumb and obvious but true.


If the product breaks constantly or cannot do what sales promised, none of the rest matters.

Maybe the underlying technology is unstable.Maybe the features are too hard to use.Maybe the workflows are confusing.Maybe the infrastructure doesn't scale.


It honestly doesn't matter what the excuse is because your customer ultimately decides what is good and bad, not the back of the business.


Founders forget this constantly.


Your back of the business is tone deaf


I have worked at companies that treated their technical teams like delicate museum artifacts that could never be challenged by customer reality.


That is a massive mistake.


If you listen to the back of the business at the expense of the market itself, the scale will lean hard right and growth will stall. Period.


Do not baby the technical organization.


Make them relentlessly customer focused.


Because the moment engineering, data science, or product stop listening to real customer pain is the exact moment they begin building things for themselves instead of the market.


And when that happens, Financial Death starts the car into the driveway for dinner.


Yes...yes...I know this model is sort of the master of the obvious. But is it really?



I write a lot about startups, innovation, and growth, but my goal is actually pretty simple. I am always trying to create very simple mental models that help founders “see” their business from different perspectives so they can keep moving toward true north.


And honestly, this particular model is useful because it simplifies the conversation down to one core question:


Is the front of the business the problem or is the back of the business the problem?


That’s it.


If founders can keep asking that question over and over again at a high level, it becomes much easier to process what is happening around them without getting lost in operational chaos.


Are we tilting left because the front of the business is struggling?

Are we tilting right because the back of the business is struggling?

Or are we balanced?


Because if things are growing, there is a very good chance you are in a period of balance. It means you are interpreting the market correctly and bringing that understanding to life in the product in a way that solves a meaningful customer problem clearly and consistently.


Please learn to think in systems.


It is one of the best ways to stay ahead of problems as a founder before they become existential ones. I have found that a relentless pursuit of simple ways to process decisions is one of the biggest advantages you can have when building a company.


Hopefully this simple mental model sparks useful dialogue inside your business. Because when the front and back of the business stay in sync, growth tends to follow.


 
 
 

Comments


©2020 by InnovationMuse. Proudly created with Wix.com

bottom of page