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.