The Growth Paradox

Let’s talk about a counterintuitive truth in business: sometimes, the path to growth isn’t about doing more, but doing better.

Picture this: you’re sitting in your office, staring at your growth targets.

What’s the first thing that comes to mind?

If you’re like most entrepreneurs, it’s probably a laundry list of “more”:

• More customers

• More projects

• More team members

• More… everything

Sound familiar?

Don’t worry, you’re not alone.

This “more” mentality is deeply ingrained in our business culture.

And let’s be real—it’s not entirely wrong.

This approach can and does lead to growth, at least in the short term.

But here’s the million-dollar question:

Is it sustainable?

And more importantly, is it the smartest way to grow?

When Success Feels Wrong

Imagine this scenario: you’ve been grinding away, adding more customers, more projects, and more team members.

Your revenue chart is a beautiful hockey stick, pointing up and to the right.

You should be on top of the world, right?

But something doesn’t feel quite right.

The office (or Slack channels) that used to buzz with energy now feels… different.

There’s a tension in the air.

You start noticing some troubling signs:

• You’re stressed out. Like “forgot to eat lunch for the third day in a row” stressed.

• Your team is stressed out. The enthusiasm of growth has given way to burnout and frustration.

• Deadlines? What deadlines? Everything seems to be perpetually “almost done.”

• Quality has become a game of Russian roulette. Some outputs are stellar, others… not so much.

• Your team is a mix of superstars, and, well, let’s just say “works in progress.”

• New hires that were supposed to solve specific problems have somehow morphed into permanent fire-fighters, never quite extinguishing the flames.

If any of this resonates, you’re experiencing “The Growth Paradox.”

Your business is bigger, but is it really better?

Let’s talk numbers for a second.

When Revenue Growth Outpaces Profit

Your relentless pursuit of “more” has paid off.

Revenue is up—way up.

We’re talking 2x, 3x, maybe even 10x growth.

Pop the champagne!

But wait. Before you start planning that yacht purchase, take a closer look at your profit numbers.

How are they looking?

If you’re like many businesses in this situation, the answer might be a bit sobering.

Your revenue grew by 10x, but your profits? They only increased by 2x.

Now, don’t get me wrong. Growing profits by any amount is generally a good thing.

But let’s think about this for a second.

All that stress, all those late nights, all the new hires and fires and reorganizations… was it worth it for a disproportionately small increase in actual profit?

The Dream Scenario

What if - and here’s where things get interesting - what if your profits could grow proportionally to your revenue?

Imagine a world where:

• 2x revenue → 2x profit

• 5x revenue → 5x profit

• 10x revenue → 10x profit

Or, even better…

• 2x revenue → 3x profit

• 5x revenue → 8x profit

• 10x revenue → 15x profit

Sounds like a dream, right? Here’s the kicker: it’s not just a fantasy.

It’s possible.

But to get there, we need to radically rethink our approach to growth.

When faced with the need to grow, most businesses put their blinders on to increase capacity.

The Capacity Trap

The thinking goes like this: to do more, we need more capacity.

More people, more equipment, more office space, more software subscriptions— you name it.

On the surface, this makes sense. If you want to produce more widgets, you need more widget-makers, right?

But here’s the problem: increasing capacity almost always means increasing overhead and costs.

And while your capacity to produce might go up, it doesn’t necessarily mean your actual output will increase proportionally.

Why? Because of a sneaky thing called waste.

Every activity in your business that the customer isn’t paying for is waste.

These are the real profit-killers, and they come in many forms:

• Overproduction: making more than you can sell or use.

• Defects: time and resources spent fixing mistakes.

• Inventory: tying up capital in unsold goods or unused materials.

• Waiting: idle time between steps in a process.

• Transportation: unnecessary movement of information or materials.

• Excess processing: putting more work into a product than the customer values or needs.

• Motion: Unnecessary movement of people that doesn't add value to the product or service.

• Inactive employee potential: underutilizing employees' skills, creativity, and knowledge in the workflow.

These forms of waste are like invisible weights dragging down your business.

They create burden, frustration, and friction.

They’re the reason your team feels like they’re working harder than ever but not seeing proportional results.

So, if adding capacity isn’t the answer, what is? It’s simple, but not easy: reduce waste.

Reducing Waste for Increased Productivity

When you reduce waste in your processes, something magical happens.

Your throughput increases, which in turn boosts your productivity.

Suddenly, you’re able to process more volume through your existing capacity.

It’s like finding an extra gear you didn’t know your car had.

This is why I’m such a huge advocate for process improvement.

It’s not sexy. It doesn’t make for great headlines or Instagram posts.

But it’s the secret weapon of truly scalable businesses.

The Unsexy Secret to Scalability

Instead of asking, “How we can do more?” start asking, “How can we do better?”

• Instead of adding more team members, how can you maximize the productivity of your existing team?

• Instead of chasing more customers, how can you increase the value you provide to your current customers?

• Instead of starting more projects, how can you ensure your current projects are running as efficiently as possible?

This shift in thinking from quantity to quality, from “more” to “better,” is the key to sustainable, profitable growth.

It’s not always easy, and it might not give you that immediate dopamine hit of seeing big numbers go up.

But in the long run, it’s the surest path to building a business that not only grows but thrives.

The Challenge: Identifying and Reducing Waste in Your Business

This week, take a hard look at your business processes.

• Where are you seeing signs of waste?

• Where are your team members experiencing the most friction?

• What tasks seem to take way longer than they should?

Identify one area where you can reduce waste, and focus on improving that process.

Keep it simple. Keep it small. Make it so small that you could envision yourself making at least one of these improvements every single day.

Whatever it is, commit to making it better, not just bigger.

Remember, the goal isn’t to do more. It’s to create more value with what you already have.

That’s the real secret to scaling a business that’s not just bigger, but truly better.