How to Build a Company That Doesn’t Just Start but Scales

If you're like most founders, you’ve been told to focus on building a great product and then crank up demand gen. But what if the failure point isn’t the product or even the demand, but what happens in between?

In this episode of The Bliss Business Podcast, we’re joined by Bruce Cleveland, founder and CEO of Traction Gap Partners, former tech executive, venture capitalist, and bestselling author of Traversing the Traction Gap. His insights aren’t just rooted in theory. They’ve helped launch billion-dollar companies like Marketo, Doximity, and C3.ai.

Whether you're just beginning or stuck trying to scale, Bruce shares a vital truth: most companies don’t fail from lack of effort. They fail from misalignment.

Let’s unpack how to avoid becoming one of them.

Why the “Traction Gap” is Where Startups Die

Bruce explains that the phase between MVP (Minimum Viable Product) and MVR (Minimum Viable Repeatability) is the most dangerous stretch for startups. This is where 80 to 95 percent of them fail. Why? Because they jump too fast into demand gen without establishing foundational market engineering.

Think of it like trying to bolt a supercharger onto a four-cylinder engine. It doesn’t matter how much fuel you pour in if the engine isn’t ready.

Instead, Bruce emphasizes building the “stadium” first — your category — before inviting fans (customers) to watch you play.

The Five Tenets of Market Engineering

Forget starting with demand gen. If nobody knows who you are, what you do, or why it matters, your outbound efforts will fall flat.

Bruce lays out five essential pillars of market engineering:

• Category Design

• Thought Leadership

• Storytelling

• Messaging

• Positioning

These principles help create the conditions for scalable traction, turning soft signals like search trends and site engagement into hard momentum.

Culture is Your Operating System

Bruce doesn’t just talk about go-to-market strategy. He dives deep into the cultural foundations needed to scale. He introduced the concept of a “Minimum Viable Culture,” encouraging leaders to codify company values early and use them to guide decisions, hiring, and even acquisitions.

Culture, when done right, becomes a retention tool, a decision-making lens, and the invisible hand that shapes growth.

Leadership Lessons: Be Hands-On, But Not Overbearing

Is it better to delegate or stay hands-on? Bruce believes the answer is both. Especially in companies under $1B, founders need to be deeply involved. But the key is how you show up.

Earning the confidence of your executive team matters more than micromanaging them. Founders who can stay engaged without intimidating their teams tend to build lasting, scalable cultures.

Key Takeaways

• Don’t rush into demand gen. Focus on market engineering first

• Define your category before building your brand

• Use leading indicators like time on site and bounce rate to measure early traction

• Document your culture early and live by it

• Founders should stay involved with emotional intelligence

Final Thoughts

Bruce Cleveland’s framework gives leaders a roadmap not just for launching, but for truly scaling. Whether you're a founder with a fresh idea or a CMO trying to find product-market fit, these insights provide guardrails for navigating the messy middle.

Want to build a company that lasts? Start by building a category. Align your culture. And never assume your product will sell itself.

Check out our full conversation with Bruce Cleveland on The Bliss Business Podcast.