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The $100 MBA Show

MBA1183 Guest Teacher: Paul Jarvis- Why growth might be the worst thing for your business.

Jan 21, 2019
In this enlightening discussion, Paul Jarvis, a best-selling author and entrepreneur, shares his unconventional insights on the pitfalls of rapid business growth. He argues that excessive expansion can lead to catastrophic failures, emphasizing the importance of sustainability and longevity over aggressive scaling. Drawing lessons from a 1300-year-old hotel, Jarvis advocates for prioritizing remarkable service and stability. His perspective challenges entrepreneurs to rethink success and consider the value of staying small while fostering authentic customer relationships.
19:52

Episode guests

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Quick takeaways

  • Rapid growth can jeopardize business survival, often leading to failure due to unsustainable expansion rather than poor strategies.
  • Long-term success and stability often stem from prioritizing exceptional customer service over aggressive growth initiatives in business.

Deep dives

The Dangers of Rapid Growth

Rapid growth can jeopardize the survival of a business rather than guarantee success. Research has shown that a significant percentage of high-growth startups ultimately fail, not due to poor business strategies but because they expanded too quickly without a sustainable foundation. This emphasizes that prioritizing growth over profitability can lead to catastrophic outcomes, including layoffs and even bankruptcy. A study on the fastest-growing companies revealed that many struggle to remain operational just a few years after their initial growth spurt, showing the real risks associated with scaling up.

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