The Foundation of Strategy
In the book Playing to Win, which happens to share its name with my newsletter, two questions are at the heart of any strategic decision: Where to play? and How to win? These questions are simple yet profound, offering clarity to the chaos that often surrounds business growth.
As I reflect on the journey of MIT45, these two questions have become cornerstones in our decision-making process. When I joined as a consultant and eventually stepped into the CEO role, the company was at a pivotal moment. We had countless SKUs, multiple brands, and a wide range of products spread across various verticals. It was exciting, but it wasn’t sustainable.
The Power of Focus
Ideas are the lifeblood of any company, but they don’t pay the bills. Execution does. As we examined where we wanted to play and how we could win, one thing became clear: not all ideas are worth pursuing.
We identified a core truth about our products. The top 20% of our SKUs were driving 80% of the revenue, while the bottom 20% were consuming resources without delivering returns. Products that didn’t align with our creative niche had to go. No matter how much effort, capital, or passion went into their development, they weren’t contributing to our success.
Letting go of underperforming products wasn’t easy. It required a level of humility to acknowledge that great packaging, pricing, and positioning couldn’t replace alignment with the company’s mission. Divesting those products freed up resources to double down on what truly mattered: creative-containing products that defined our market authority.
Maturing a Brand Without Losing Its Edge
MIT45 began as a counterculture, smoke shop brand—bold, aggressive, and unapologetic. That identity was rocket fuel for our initial growth, propelling the company to incredible heights. But as we matured, it became clear that what got us here wouldn’t get us to the next level.
We faced the challenge of evolving without alienating our core customers. A brand refresh was inevitable, but it had to honor the identity that made us successful while embracing a more modern, timeless aesthetic. The goal wasn’t just to appeal to a broader audience but to create something we could wear proudly—a logo and brand identity that felt classic yet forward-thinking.
This process was painstaking. It took months of internal collaboration, strategic conversations, and a relentless focus on preserving what mattered most while refining the rest. The result? A brand poised for its next chapter, ready to compete at a higher level without losing sight of its roots.
Letting Go to Move Forward
For CEOs and founders, one of the hardest lessons to learn is that not everything can move forward with you. Whether it’s a product line, a process, or even a mindset, growth often requires letting go.
This realization is supported by principles from Managing Corporate Lifecycles. Companies, like people, go through evolutionary stages. The systems, processes, and approaches that work in the early days of a business won’t sustain it as it grows. To professionalize and scale, founders must often step back from the very behaviors that fueled their initial success.
This doesn’t mean abandoning the passion or creativity that built the business. Instead, it’s about channeling those strengths into a more strategic approach—one that focuses on leveraging resources, empowering teams, and refining operations for long-term growth.
Where to Play, How to Win
At MIT45, we’ve embraced these strategic questions as guiding principles. Where to play? In the niche we’ve carved out as market leaders in creative-containing products. How to win? By continuing to evolve, adapt, and execute with precision.
As I look ahead, I’m reminded of the balance required to navigate these shifts. It’s a process of constant refinement, driven by a commitment to our vision and a willingness to make tough decisions. Whether it’s divesting underperforming products, refreshing our brand, or stepping into a more strategic leadership role, every move is about positioning ourselves to win—now and in the future.
Do You Want to Work with Ryan?
If you’re ready to elevate your business strategy and align your decisions with a clear vision for success, Ryan Niddel can help. As the CEO of MIT45 and a trusted advisor to entrepreneurs, Ryan specializes in helping leaders identify where to play and how to win in their industries. Learn more at ryanniddel.com.
