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The Hard Truth for Startup Brands (And How to Win Anyway)
Startup margins are thin. Here’s the 4-part playbook we use to help brands survive and thrive.
Hey there, it’s Patrick from TVG.
I talk to a lot of startup brands.
And most of them hear this the hard way:
The first 90 days are the toughest.
Margins are thin, budgets are tight, and every dollar has to pull its weight. Most founders expect instant profit from ads… but with a 20–30% margin on a $24 product (and $13 shipping you’re eating), that’s not realistic.
Here’s the reality:
You probably won’t be profitable on the first purchase.
You can scale if you understand your data, build retention, and stop wasting time on channels that don’t move the needle.
The brands that make it through this phase? They use the first 90 days to build the systems that actually fuel growth.
Here’s what I tell every startup we work with:
Stop chasing profit on the first order.
Focus on acquiring customers (even at a loss) if you know your 60–90 day lifetime value. That’s where the money is.
Retention is non-negotiable.
Email and SMS should drive 30–40% of your revenue. If they’re not, you’re burning cash on ads for no reason.
Make your offer irresistible.
Subscription, bundles, free shipping—whatever it takes to get customers in the door and sticking around.
Invest in creative and data, not just ads.
The brands who grow fast aren’t guessing. They’re testing relentlessly, tracking CAC, and doubling down on what converts.
If you’re a startup brand and you want to avoid the “we burned all our cash and stalled” trap, focus on building these systems first. It’s not sexy, but it’s how you get through the hard part and actually scale.
Want to see how we build these systems for brands in 90 days?
– Patrick O’Driscoll
CEO, The Visionary Group
