If you want to achieve growth in your business or startup, there are some important points you need to be aware of. First, did you know that the term “growth” can sometimes be the opposite of “profit”? And did you know that growth can be one of the biggest factors that lead to the failure of startups?

Growth, expansion, and scaling through different models like “Scaling” and “Exponential Growth” are terms used to describe how a company grows rapidly, achieving levels that were once difficult to reach. However, there is an important issue to consider: growth in the current concept can become “poison” for a company if not done thoughtfully, especially with the large influx of investments we’ve seen recently, which is about to end.

At the beginning, we observe that most entrepreneurs, when they start implementing an idea, focus on rapid growth and expansion before considering how to make their first sales or even determining if their idea is feasible. The initial testing of the idea, which provides basic returns (Proof of Concept – POC), is often overlooked, and instead, the focus is on “growth” without determining whether this growth will lead to long-term profitability.

A study conducted by Inc. magazine on 3,200 startups showed that 72% of them failed and shut down because they started implementing the growth model before confirming the existence of a profitable business model. This means that companies that began expanding before ensuring a stable and sustainable profit model ultimately failed.

As is well-known, growth requires an increase in costs, such as expanding branches, increasing customer acquisition expenses, or other operational costs. But does this growth guarantee profitability? The answer is no. Growth may lead to an increase in customers or transactions, but if this growth is not supported by a real and sustainable profit model, it could be fake growth.

If you are thinking about achieving growth, you must have a clear plan to increase profitability, ensuring that growth is gradual and based on tangible results. If growth is happening merely for expansion without considering the returns from this expansion, you may be falling into the trap of “growth at any cost.”

The reality is that many startups may focus on growth to attract investments or get higher valuations, while the truth is that this growth does not necessarily mean it will be profitable. Growth should be aimed at sustainable profitability and should be assessed based on actual returns, not fake numbers.

In conclusion, if you are thinking about starting a business or expanding your operations, you should first think about how to achieve profitability. Don’t make growth an end in itself without ensuring that this growth will lead to sustainable results.