“Growing Sustainably: Why Startups Need to Prioritize Scalable Strategies”

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Until recently, many startups have prioritized growth at all costs, using abundant venture capital to acquire users and dominate markets without regard for profitability or sustainability. However, recent market conditions have shifted toward “efficient growth,” balancing growth with profitability to create a sustainable path to scale. The churn rate is not stable enough to accurately forecast customer lifetime. With a product improving over time by adding features that address customers’ needs, we would expect the churn rate to decline. Despite an improvement in a product, there are external factors beyond a company’s control, such as macro headwinds, that may encourage a higher churn rate.