“If we just sell more, everything will be fine.” This is a dangerous mantra. We often see companies that double their revenue only to find their bank accounts emptier than before. This is the Profit Paradox.
Scaling Inefficiency When you scale a business with hidden operational blind spots, you aren’t just scaling your revenue—you are scaling your inefficiencies.
- If your margins are slightly off, volume will magnify the loss.
- If your delivery processes are manual, more clients mean higher labor costs and lower quality.
The Financial Blind Spot Many founders look at the P&L (Profit and Loss) statement but ignore the Cash Flow statement. They celebrate a closed deal but miss the fact that the cost of servicing that deal erodes the margin.
See It, Shift It, Scale It Before you push the “growth” button, you need a financial stress test.
- Analyze your unit economics: Are you actually making money on every unit sold?
- Audit your capacity: Can your current team handle 20% more work without breaking?
- Check your cash cycle: How long does it take for a dollar spent to return as a dollar earned?
Growth is vanity; profit is sanity. Don’t just scale the top line. Scale the bottom line.
