Hey there, business owners! Ever heard someone say, “Just grow your business and you’ll make more money”? Today, let’s challenge this common belief and explore what’s really happening when businesses expand.
Start With the “Why”
Before chasing growth, ask yourself: Why do you want to make more money? What’s your end goal? Understanding your motivation creates clarity and purpose for your growth strategy.
The Hidden Costs of Growth
Growth isn’t free—it’s an investment. As your business expands, expect:
- Increased operational costs
- Cash flow challenges
- New corporate functions (HR, management layers)
- More complex systems and processes
- Higher customer acquisition costs
When you grow from 5 to 50 million, your business fundamentally changes. You’ll need new software, more staff, and different management approaches—all affecting your bottom line.
The Mindset Factor
Some entrepreneurs struggle with scaling because of mindset limitations. It’s not that they can’t succeed, but their relationship with money and success might need adjustment.
Growth vs. Profitability: Finding Balance
Like claiming you’re starting a business “for lifestyle,” believing growth automatically equals profit oversimplifies the journey. You can absolutely have both, but it requires intentional planning.
Growth should be strategic, not just for growth’s sake. With the right guidance and accountability, you can expand while maintaining or improving profitability—but it won’t happen by accident.
So before you chase that next revenue milestone, consider what growth will actually cost you and whether your business model can support it profitably.
What’s your experience with growth and profitability? Has expansion always improved your bottom line?
About Monday Myth Check
Monday Myth Check is a weekly dose of reality where Jono Brake holds up commonly held leadership beliefs and asks the question “What if this was not true”. You can find the weekly videos and other posts by following Jono Brake on LinkedIn or following The Forged Leader, as well as on Youtube @jonobrake.
Take Action: Join The Forged Mentor Community
Did you know that most leaders feel like they have to figure their journey out alone? Having a mentor and coach in your corner who understands your journey aspirations and challenges are invaluable for your personal and professional growth. You can continue this conversation inside The Forged Mentor, our monthly mentoring program for business owners and leaders. It’s free to connect with more interactive programs starting from $199 per month – you will join a community of like minded leaders and receive great content, advice and community, so you don’t have to do this journey alone.
