Profitability and Growth go hand-in-hand when it comes to success in business. However, sometimes one must take priority in order to achieve an intended goal within a companies business model. Cooper discusses the importance of these two factors, and asks the question; What is more important to your business: Profit or Growth?

Video Transcription

Over the last few months, we’ve used the pandemic and the lockdown period that we’ve been working through like a lot of other businesses to think about how we operate.

Profit vs Growth: Which you need to focus on?

We’ve really stripped our business down into different categories and different verticals and tried to focus more on profitability with the view that profitability breeds security in our cost base or security in funding our cost base and gives us the maximum ability to wear the downturns like the one we’re in right now. It’s something we’ve become really passionate about.

Having said that, profitability is only one component to a fast-moving business you’ve also got growth. A few experiences we’ve had over the last couple of years have been high growth experiences at a loss we’ve moved into different markets, different verticals, different service categories, different types of clients in order to create a beach head for ourselves or get ourselves into to new areas and grow our business and it’s been a strategic move.

So ultimately we’ve suffered short-term losses or short-term pain for long-term gain, that’s a great model when you’re in times of prosperity but doesn’t work as well when you’re in times of downturn like we’re in right now.  So we’re really focused on profitability because we’re completely self-funded, we’re wearing as good as our last client project. Some other businesses we know or friends businesses we work with who are venture capital-funded or they’re backed externally growth is really the number one mantra for them so they’re really focused on growing head count in their team growing customer base and growing scale in order to be the biggest in the market their theory is the biggest in market wins.

Whereas with Talk our theory is more as an agency we need to be profitable because we’re self-funded, we run a high labour cost model. Labour is by far our biggest cost and we’re really focused on profitability at the moment so it really came to get everyone’s thoughts and feedback on what’s more important for your business: growth or profit.

I mean the holy grail is profitable growth but when they’re when you’re in a circumstance where that can’t immediately be achieved what is it that you focus on.