Intentional Growth vs. Growth At All Costs
Intentional growth is like dating with a purpose, not just swiping right on every metric that winks at you.
Intentional growth refers to a calculated approach to startup scaling that goes beyond merely chasing metrics.
Intentional Growth is sustainable
I’ve always loved Elena Verna’s description of growth as how startups “acquire, retain, and monetize customers in a predictable, sustainable, and competitively defensible way.”
The emphasis on sustainable is mine. While we should always look to do things that don’t scale, many startups — successful ones at that — taught the improper practice of doing things at scale that don’t scale.
This means you're not just throwing spaghetti at the wall when it comes to customer acquisition or product tweaks. You're making calculated moves that are designed to pay off in the long run.
Granted, a few Hail Marys have made magic but make no mistake: Sand Hill Road is scattered with startups shattered by spendy, shortsighted scrambles.
‘Growth At All Costs’ is a risky remnant
The 2010s gave way to a ‘growth at all costs’ startup mindset, a practice exacerbated by the pandemic.
As the New York Times pointed out, the daily habits of city-dwelling millennials in their 20s and 30s were subtly financed by VCs, a phenomenon they dubbed the 'Millennial Lifestyle Subsidy.’
VCs are shifting their focus to sustainable growth and profitability, scrutinizing unit economics like LTV/CAC ratios. Startups who fail to follow suit will suffer.
What’s the risk?
Neglecting intentional growth is akin to building a house on a foundation of sand—it might stand for a while, but eventually, it's going to collapse.
Without a strategic approach to scaling, you risk becoming a 'one-hit-wonder' in the startup world, dazzling briefly but lacking the staying power for long-term success.
Unplanned growth lacking in conviction and vision can lead to operational chaos, customer dissatisfaction, improper employee allocation, and an accelerated burn rate.
Be intentional.