Some think of prioritising growth while some incline more towards profitability. While both approaches are correct, each has its benefits and drawbacks. Let's first try to understand the meaning of both terms and then try to analyse which approach suits you best.
What is Growth?
Business growth simply means a stage where the business reaches the point of expansion and seeks additional options to gain more profit. The expansion makes the company bigger, increases its market and ultimately helps to earn profits. Some indicators like the overall revenue, market share, number of employees, and turnover help in evaluating the growth.
When You Keep The Growth First:
It opens the door to obtaining follow-up funding from current shareholders of the company
As the focus is on growth, the company attracts media attention
Getting a necessary head-start on the market share from the competitors
Demerits of Putting Growth First
This may lead to a negative perception from the public if rigorous steps are required to earn profits
May face the consequences of failing to meet big growth targets
A constant fear of running out of funds
What is Profitability?
This story is from the February 2024 edition of The Global Hues.
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This story is from the February 2024 edition of The Global Hues.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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