Should Startups Focus on Profit or Growth?
Start with profit. Here's why 👇

In today’s startup world (hyper) growth trumps profit.

There are plenty of unprofitable unicorns around to prove my point …

But working with 100s of startups every year, I’ve seen how easy it is for them
to “grow” themselves into bankruptcy.

So here’s my (potentially unpopular) opinion:

→ Profit first, then growth.

Profitability isn’t just about making crazy money, it’s about creating a
repeatable pathway to viability.

This also includes thinking about the “growth allocation” (feed your business
but spend wisely).

And that’s why profitability comes first — and why growth should be viewed as a
portion of profit.

It’s tempting to plow every cent into growth.

The question is:
Is it worth it, even if it might mean the startup won’t be around long enough to
truly succeed?

Clear answer, from a founder's standpoint: NO!

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Originally posted by Ryan Rutan on LinkedIn