Sustainable Growth Requires Strategic Investment—Not Just Revenue
When people talk about growth, revenue often takes center stage. But revenue alone doesn’t fund sustainable growth—margin dollars do.
Every investment you make—whether in talent, tools, or time—draws from your profit, not just top-line revenue. That’s why chasing growth through aggressive discounting or price cuts can backfire. Lower prices might bring in more business, but if they erode your margins, you’re left with less fuel for future investment.
It’s critical to understand the elasticity of demand in your market. Will a lower price actually lead to a meaningful increase in volume—and more margin dollars—or just busier teams generating less profit? In professional services, where capacity is fixed, utilization matters. Filling up your calendar with low-margin work may look like growth, but it can actually constrain your ability to take on high-value opportunities later.
Think strategically. Pricing decisions are hard to reverse. It’s far easier to protect margin than it is to claw it back once it’s been given away.
Smart growth means investing wisely—and that starts with protecting your margins.