Exponential growth devours and corrupts
DHH
2.5K177

I think growth is not always the correct answer. Our little startup only gains 3–4 new users / day. That’s growth but not in the SV sense. Yet it’s very sustainable for us. We couldn’t survive if we grew much faster, because our users aren’t customers and we’re still finding the sweet spot where the arc of lifetime customer value exceeds the arc of customer churn and acquisition rate. We’re breaking even on most months, showing a tiny profit on a few mos, and dipping in the red a little in a few mos. We have very strict parameters we’ve put in place for our company —most importantly, that the company should pay for its expenses out of its own revenues.

Hey there’s a novel thought.

For many markets, growth isn’t unlimited. It’s also not true that if you’re not growing you’re dying.

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