Growth or Profitable business model?
Nairi Baghdasaryan, PhD
2 replies
What do you think, is it more important for early-stage startups to focus on rapid growth and scaling or on building a sustainable and profitable business model?
Replies
Kavita@kkavita
Roast My Meal by Hoku
This depends on what kind of business you are trying to build and what the funding climate is at any given point. Previously, if you wanted to be a VC-backed startup, then you very much had to prioritise rapid growth (or else you had no chance of getting funded). However, things havechanged in the last year or so, and even VCs are prioritising sustainable growth vs growth at all costs.
Share
Somewhere in the middle for me.
I don’t want investment if it means having an undesirable stakeholder having influence over my work/life.
Going for growth over profit means having enough financial runway to last.
My current strategy is to run a profitable agency that funds development of our own products.
So far so good, but it’s not easy.