ASOM Pod

EP 43 : Scale vs Profitability: When Growth Becomes Unsustainable w/ Anthony Coombs

Apr 17, 2025
Guest
Anthony Combs
In this engaging discussion, Anthony Combs, CEO and Founder of Splendies, shares insights on navigating the challenging waters between scale and profitability. The conversation dives into real-world examples like MoviePass and Nasty Gal, revealing the pitfalls of unsustainable growth strategies. Combs emphasizes the significance of understanding customer acquisition costs and adapting to market demands. They also tackle the rise and fall of subscription services, offering valuable lessons on maintaining quality while expanding into new channels.
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INSIGHT

Pandemic Fueled High Competition

  • The pandemic triggered a surge of entrepreneurs but few achieved sustainable business growth.
  • Many struggled with unexpected challenges like increased competition and rising customer acquisition costs.
ADVICE

Reality of Entrepreneurship

  • Understand entrepreneurship requires long hours and often losing money initially.
  • Prepare mentally for a doubled workload and uncertain financial reward before starting.
INSIGHT

Growth Without Profit Is Risky

  • The "growth at all costs" approach is intoxicating but risky if not balanced with profitability.
  • Sustainable growth requires paying close attention to bottom-line metrics like EBITDA and CAC early on.
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