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It's the modern business Moloch trap. You've gotta either grow revenue or margins more or less continually (well, unless you hit the magic and basically impossi
by _ea1k 3y ago
It's the modern business Moloch trap. You've gotta either grow revenue or margins more or less continually (well, unless you hit the magic and basically impossible # for margins).
And revenue usually doesn't grow indefinitely, so...
- JumpCrisscross 3y ago> gotta either grow revenue or margins more or less continually Statements like this show how Silicon Valley, over the past decade, has stripped itself of foundational business acumen. A garden-variety MBA should be able to tell you that most businesses don’t do this. They aren’t expected to grow like that. Most businesses in America are steady-state, with low or no real growth. If you promise growth and fail to deliver, yes, you’ll get skewered. If you don’t want that, don’t promise growth.
- _ea1k 3y agoIn case you didn't catch it, my comment was a direct reference to the rule of 40. It has come to dominate a lot of thinking in finance, and I don't think it is just Silicon Valley. It has interesting implications in practice.