Expenses Always Precede Growth
There are many differences between our early growth stage clients and enterprise ones. One major one is their comfort level with re-investing in the business and delaying profit. And that makes sense. As a founder you put in the long hours and take on the risk. You want to enjoy what spoils come your way when they come.
But that can conflict with a lot of owners desire for growth. Why?
Growth is expensive. That sounds obvious, but it’s surprising how often people forget it. Growth doesn’t just happen—it must be fueled.
This is why expenses always come first. Before you can grow, you must invest. In early growth stage companies that means hiring people, building products, or acquiring customers. You can’t grow a customer base without spending money to attract them.
What’s tricky is that expenses are visible immediately, but growth takes time.
You spend $100,000 on a marketing campaign, and for days, weeks, and months you wonder if it worked. The same is true for hiring. You spend today, but the payoff—if it comes—won’t be here for a while.
This delay creates a natural tension and anxiety.
No one likes spending money without seeing results. But trying to grow without spending is like trying to sail without wind. The temptation is to cut corners, to do just enough. And that usually fails. Growth is a lagging indicator. If you’re not willing to spend before you grow, you probably won’t grow at all.
Lesson Learned: The hard part isn’t understanding that expenses precede growth. It’s accepting it. It’s hard to spend when you’re not sure of the outcome. But if you want to grow, that’s the price. You invest first, and then you grow—always in that order.