Spotlight on Growth

A small company should not be driven by profit. Instead they should focus on growth and the ability to generate positive cash flow while maintaining low or breakeven profits. Note that we say low or breakeven profit, and not losses. We believe that if a company grows without profits, it fails to establish the successful model and discipline that are necessary for profitability once critical mass is reached. The key driver in the equation is growth and not low or breakeven profits until the company has established deep roots. When you plant a tree, you should not expect it to bear fruit in the early years . You should instead let it grow and establish deep roots, and then worry about the fruit. In this way, companies are essentially the same.

If a company is not growing, then by all means, it should attempt to increase its focus to profits. But generally , a small growing company should never have to increase profits if it is at the expense of growth.