If you have broken unit economics, growth will not fix your problem.
Sure, you could argue that economies of scale will eventually fix things, but that’s a dangerous road to commit to.
Instead, consider that the alternative is out-of-control growth, quality issues because of this growth, and out-of-control cash burn. All resulting in endangering the future of your business.
To fix this problem, you need to take a step back and look at what’s contributing to costs per unit sold being higher than revenue per unit sold.
Is it runaway customer acquisition costs? Are your input costs too high? Do you need to go back to your vendors and renegotiate? Do you need to rethink your production?
Identify the top three drivers of costs and look at ways to scale them down.
Growth should not be your priority until you fix unit economics.
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