Selecting Growth or Profit – Startup mentality

If you have a business, the profit is probably much higher on your list. Many will benefit. For example, investors can claim dividends and there is much less pressure around increased funds. In addition, employees will feel stable. However, there are companies that choose not to be profitable. That sounds incredible, doesn’t it? The decision was made to focus on other aspects of success as an entrepreneur. Instead, increase their initial focus.

It goes without saying that a company cannot grow and see profits. However, when a new company is created, it may be that aggressive growth is more important than anything else. The general startup style of business requires growth and profit, but it is not easy to do. This growth strategy has created rare examples of companies that can do both, and it often leads to billions of dollars worth of business.

Entrepreneurial strategy

In the beginning, either save every penny (bootstrapping) or invest aggressively in business growth. It must be short term. There are many ways around it; It just depends on the entrepreneur or investor you ask. It is possible that a company can be successful by following both strategies; However, making the wrong decision in these strategies can make or break your business. So, yes, there are some risks involved.


In growth strategy, you should be careful and only do it under certain conditions. First, you want to make sure you get the funds you need because you need a lot of capital. The more growth you achieve, the greater your loss in the beginning. If you don’t have funds, you have nowhere to go when your cash flow dries up. Second, you need to aggressively promote yourself to attract customers by the public – as strictly as charging, offering big or even dropping cash from your new customers.

If we look at their strategies to increase PayPal and Venmo, they have to be the best in their space. Venmo is an app in the United States that lets people pay others on their smartphones. To be the leading app for this, they offer money transfers that reduce costs with instant transactions. Sure, it was a great product, but they need a big PayPal giant to get the word out and back up people to try the product. They used aggressive tactics with promotions that offered people something they could not refuse, such as raising funds from a credit card without a commission. Lots of money was spent but in the end it was worth it. However, if they did not have PayPal to help them, they would run out of cash before the app was successful.

Most entrepreneurs do not have an alternative to this strategy. They either don’t have enough investors or cash flow to even start implementing it.


Many entrepreneurs will take this strategy. While this strategy may work, you are driving users to your competition who have the capital to carry out an aggressive growth strategy. However, there are some success stories with this strategy, which have made it a success for some companies. This can work if you hold a large part of your company as an entrepreneur.

An example of this is Lower, a financing company that went through 7 years before receiving their first investment round of $ 100 million. This strategy emphasizes cost and takes more time for a start-up to determine success. Therefore, it is a more cautious strategy that takes more time.

Whatever your strategy, it is a product of your available capital. Other times, it will be your choice or decision. For example, would you ask for funds from a large company to find out if your strategy needs to grow, or if you can afford it yourself? Are you looking for an investment that can take years to pay off? How much do you believe in its success? These are just some of the goal setting shareware that you can use. Do you just want profit, or do you want to see significant growth?

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Lorraine Couture

Staff Writer: Loraine Couturier is a jet set writing chick from Canada that travels around the world. His writing and marketing skills keep him from eating out and jumping on planes. Loraine likes to write about almost everything and pass on her knowledge to others. See him at

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