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Key Takeaways Some entrepreneurs double the size of their businesses but end up working longer hours, managing more people and carrying more risk — for almost no meaningful improvement in what they personally earn.
Entrepreneurs tend to calculate growth using direct costs, but that may not be the real calculation. Before pursuing significant new revenue, they should calculate the fully loaded cost of growth.
Don’t just ask what it costs to deliver the work. Ask what it costs the organization to support it: people, management, technology, financing, founder involvement and operational complexity.
Entrepreneurs love growth. Ask a business owner how things are going, and you’ll often hear some version of: “Great. We’re up 30% this year.”
Revenue has become our default scoreboard. We celebrate fast-growing companies. We talk about businesses reaching seven figures, eight figures and beyond. We announce new clients, new offices and growing headcounts.
But here’s the question we don’t ask nearly enough: Are you actually making more money?
I’ve seen entrepreneurs double the size of their businesses without doubling their income. Some end up working longer hours, managing more people and carrying more risk — for almost no meaningful improvement in what they personally earn.
That’s not necessarily growth. Sometimes it’s just expansion. And there is a very expensive difference between the two.
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