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>So when growth stops, profit happens almost by default. That's a pretty bubblicious thing to say. Your model depends on the nature of the costs. Expansion c
by forgetsusername 11y ago
>So when growth stops, profit happens almost by default.
That's a pretty bubblicious thing to say. Your model depends on the nature of the costs. Expansion costs aren't 100% and operational costs aren't 0%. I realize it was just a quick example, but profit will depend on how their costs are actually distributed. Certainly not automatic.
- yummyfajitas 11y agoYes, I merely meant to illustrate how a business can become profitable simply by stopping expansion. I didn't mean to imply that this 3 second toy model proves it always will, though I guess my phrasing wasn't clear.