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If you have the skills and the drive to successfully launch a good startup, then probably you won't be satisfied with keeping it a small time affair. Either you
by carlosjobim 1y ago
If you have the skills and the drive to successfully launch a good startup, then probably you won't be satisfied with keeping it a small time affair. Either you try to expand or you sell it and go make a new startup.
Businesses rarely remain stable, no matter if they're startups or not. Because that wouldn't make any sense. Either they shrink or they grow. You can call this the law of midrange businesses.
Consider a midrange hotel:
Either the owner cares about his business and continually improves the facilities and the experience for the guests. Soon the hotel will have a good reputation and will constantly be full. So the natural next step is for him to increase prices, because there is the demand and also he has higher operating costs. Repeat this process over the years and the midrange hotel is a high-end hotel.
Or the owner does not care about his business and continually lets things decay and become a worse experience for the guests. Maybe because he wants to save on operating and investment costs. Soon the hotel will have a bad reputation and the owner will decrease prices to attract guests, then further cut costs because cheaper guests don't demand much. Repeat this process over the years and the midrange hotel is now a low-end hotel.
And this happens in all businesses, because in the end they are run by people. If you'd love for companies to get profitable and remain small-ish, then you have to make such a company.