Do you want to grow?
A growing business is not the same as a profitable business. Scaling to grow is costly. It takes money to fund the resources needed, such as staff, equipment, infrastructure, premises and so on.
Scaling for growth creates the potential for future profits, but this can be a gamble. So if it is a gamble why do Founders pursue a growth strategy?
- Market share – Founder pursue growth so that they can better compete or even crush the competition.
- Expand brand awareness – so the their Startup is the go-to business in their sector
- Economies of scale – scaling brings the overall costs down. However, you need to be mindful that the cost maybe lower, but it does not eliminate them altogether.
A profitable Startup may mean just chugging along, where growth may or may not happen organically. However, staying in your comfort zone, in this instance, may deliver the quality of life you are seeking.
To grow or not grow is a choice, both bring huge benefits. It all depends on your sense of purpose.