Four Reasons for Growth

Most companies grow for four main reasons:

1. Inflation: As the cost of living rises, businesses need to increase their revenue to maintain their profitability. This can be addressed by raising prices annually.
2. Investors: If a company has taken on outside investment, it will be under pressure to grow in order to provide a return to its investors. This can be avoided by bootstrapping or starting with minimal investment.
3. Churn: When a business loses customers, it needs to acquire new ones to replace them. A high churn rate can create a constant pressure to grow. This can be mitigated by focusing on customer retention.
4. Ego: The desire for status and recognition can be a powerful motivator for growth. Many entrepreneurs want to build a large company because they believe it will make them more respected. This can be overcome by defining your own version of success.

By understanding these four drivers of growth, a _Company of One can make more intentional decisions about when and how to grow.