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Growth Paradox

1 GoKawiil brief on this topic

Opinion: Fast-growing startups often collapse despite profitable books, warns Entrepreneur contributor

An Entrepreneur contributor explains that many startups fail not from lack of profit but from running out of cash, a pattern dubbed the growth paradox. Rapid expansion forces companies to pay upfront for hiring, inventory and fulfillment while customer payments lag 30 to 90 days behind, draining bank accounts even as income statements look strong.