What’s The Difference Between Profitability and Growth?

I won’t lie, being in high growth is very FUN.

But growth isn’t very attractive if it comes at the expense of quality of life, peace of mind, and family relationships.

Let’s break down the difference between growth and profitability:

GROWTH:

  • Key metrics: Revenue growth rate, customer acquisition rate
  • Often prioritized by companies to gain “traction”
  • Increase in market share over time
  • Requires upfront investment
  • Short-term focused

PROFITABILITY:

  • Key metrics: Gross margin, net profit margin
  • Requires discipline and cost management
  • Generating more income than expenses
  • Long-term sustainability

TL;DR
Revenue is vanity. Profit is sanity.

Get My Best Strategies To Improve Your Company's Performance & Scale Profitably Dripped Daily In Your Inbox

Get Daily Strategies to Help You Increase Your Profit, Improve Company Performance, Scale Your Operations, Remove Yourself As a Bottleneck, Attract the Best Clients, Win Bigger Deals & Keep Clients Longer

Read Time: 2 Minute or Less