For years, many companies were rewarded for growing revenue at almost any cost. The argument of this piece is simple: sustainable growth is growth a company can afford, and profitability is what makes it possible.
Profit buys independence
A company that funds itself from operations does not need to raise money on unfavourable terms when markets turn.
Unit economics reveal the truth
If each customer costs more to acquire and serve than they bring in, scale magnifies the problem rather than solving it.
Growth and discipline are compatible
The strongest companies invest heavily in growth where returns are proven and cut where they are not.
Key takeaways
- Profit buys independence
- Unit economics reveal the truth
- Growth and discipline are compatible
