Why fast growth is a trap
And what to do instead…
Growth is usually the key objective for every CEO. In fact, for most of the board. In the current economic climate, it’s very easy to feel under even more pressure to grow quickly.
Competition is hotter than ever right now. With shareholders breathing down your neck demanding results, scaling quickly can seem like the right answer. But, what is the cost of that speed?
Let’s look at some of the issues…
Fast Growth - The Hidden Risks
Operation overload hurts profitability - the business is struggling to keep up with demand, leading to inefficiences, mistakes and burnout. You hire quickly, mend processes with sticking plaster and firefight. And the result? Wasted time, higher costs and a team who are totally frazzled and unable to cope. In this environment, when your margins are likely to be under pressure, can you live with wasting money like this?
Customers pay the price and leave - when a business is in fast growth the focus usually shifts to new customers - bringing in new deals and new revenue. But what happens to existing customers? While the attention is on the new shiny customers, the existing ones can feel neglected. Service slips, communication fails, things don’t feel the way they used to. Suddenly, your churn rate increases. When customers don’t feel valued they look around for alternatives, and then your profitability takes a tumble.
Financial strain - scaling quickly often leads to spending quickly. Marketing, infrastructure and new hires. If this isn’t supported with a clear retention strategy those investments won’t deliver sustainable results. Revenue might grow in the short term, but will struggle to stabilise or be consistent.
So then the question becomes: Is your growth adding value, or just inflating costs?
The Commercial Reality - Why Retention Wins in Any Economy
I want to challenge you to rethink your approach. In times like these, fast growth isn’t the answer - sustainable growth is. And the key to sustainability lies in retention.
When you focus on keeping the customers you already have happy a few powerful things happen:
Profitability increases - retained customers spend more over time, boosting their lifetime value and your profit
Costs decrease - you already know it is cheaper to retain an existing customer than acquire a new one
Referrals skyrocket - delighted customers are happy to recommend you. They trust you, and know you will deliver for friends and business associates, so there’s little risk to them. And a much better return on investment for you - a win/win.
What can you do now?
Identify the waste - this is a job for every member of the board. Look closely at where budget is being spent. Are you overspending on acquisition while ignoring retention? Are broken or inefficient processes eating into your margins? A forensic review of your operations can free up resources to be invested in smarter ways.
Listen to your customers - when was the last time you had a meaningful conversation with your customers? Structured customer conversations can uncover where your service falls short, what’s frustrating them, and what would make they stay longer or spend more.
Start small and test - you don’t have to overhaul everything overnight. In fact, I would encourage you not to do that. Start with a pilot program focused on improving customer retention. Use the insights from customer conversations to refine your onboarding or streamline support. Pick one thing that’s a recurring niggle and work on fixing it.
Let’s Talk about the Long Game
Fast growth might feel like a win today, but sustainable growth builds the kind of business that thrives tomorrow. A business where your customers stay longer, spend more, and advocate for you.
This isn’t about slowing down - it’s about being smarter, more deliberate, and more customer centric in how you grow.
The good news? You don’t have to do this alone. If you’re ready to identify the hidden traps in your growth strategy and make retention your competitive advantage, let’s have a conversation.
