You probably relish the challenge of seeing how far and how fast you can grow. Growth can be an exhilarating experience and public recognition of growth accomplishments abound. Most honor rolls of business, such as the Fortune 500 and Inc. 500 base selection on sales or sales growth.
But beware. So much hoopla accompanies rapid sales growth that the question of profitability may go unexamined until major problems set in. My experience confirms the critical point that growth alone does not guarantee profitability or long-term survival–and can actually spell disaster if improperly managed.
The case of an auto parts supplier entrepreneur highlights this point. At one point in his firm’s meteoric growth, he received many local, state, and national awards honoring his accomplishments, including Entrepreneur of the Year.