Dalton + Michael

What do you do if your startup isn't working? #startups

how to pivot when your startup becomes a zombie company.

Apr 7, 2026·1m·Watch on YouTube ↗

📖 CHAPTERS

1. 1

   Defining “escape paths” when a startup stalls

   Michael opens by asking what viable escape paths look like for a startup that isn’t working. The conversation frames the rest of the advice around acknowledging reality and choosing decisive actions rather than drifting.

2. 2

   Step one: admit there’s a problem

   Dalton argues the first and most important move is admitting the situation is bad and being honest about it. Without that clarity, founders keep operating as if minor tweaks will eventually work.

3. 3

   Recognizing denial and “zombie startup” patterns

   They describe how founders often live in denial: part of them knows the company is a “zombie startup,” while another part manufactures reasons to continue unchanged. This mental split keeps teams stuck in rationalizations rather than decisive learning.

4. 4

   Getting real about trajectory and outcomes

   Dalton emphasizes confronting the hard truth: the company is not on the right trajectory. This clarity creates the foundation for making a high-leverage decision instead of continuing to hope the trend reverses on its own.

5. 5

   Why incremental fixes aren’t enough after a long stall

   If small changes have been tried for a year or two without results, Dalton argues more incrementalism won’t suddenly work. At that stage, continuing the same pattern is effectively choosing stagnation.

6. 6

   The “come to Jesus” moment: commit to radical change

   Dalton recommends a decisive turning point where founders commit to radically changing something fundamental about the business. The idea is to create a true reset—something meaningfully different from prior attempts.

7. 7

   Balancing the risk of radical action vs. the risk of staying put

   They acknowledge radical changes can be wrong, but argue the current path is already close to failure. If the status quo is effectively “dead anyway,” taking a bold swing can be the most rational option.

8. 8

   Do what you’d never do on your own (and embrace discomfort)

   Dalton concludes by encouraging founders to try something that feels uncomfortable or scary—something they would normally avoid. When existing tactics aren’t working, discomfort can be a signal you’re finally exploring genuinely new options.