Sustainable Growth vs. Rapid Scaling in Business

Sustainable growth focuses on establishing a value-based business that endures over time, contrasting with the common tech startup trend of rapid scaling through large funding rounds that can lead to a loss of control and oversight. Many entrepreneurs chase quick growth due to pressure from venture capitalists, who operate on a model that accepts a high failure rate in exchange for a few successful investments that yield significant returns. This rush to scale without a solid understanding of profit margins and business fundamentals often leaves a trail of entrepreneurs whose promising ventures collapse under rapid expansion. The importance of maintaining company culture emerges as a critical factor; rapid growth can dilute culture and hinder integration of new employees. The 'rule of 72' serves as a practical tool to gauge growth rates and illustrates how sustainable growth—such as a steady 24% increase—can effectively double sales while preserving company culture, compared to faster growth rates that risk cultural disintegration and lead to a short-term focus. A long-term perspective is necessary for building a viable organization rather than merely a fleeting opportunity for quick profit.