Growth vs. Profitability: Riding the Investor Wave or Building a Sustainable Business?

In today’s business world, there’s a mantra that seems to echo from boardrooms to investor meetings: growth, growth, growth. For many, it’s become the holy grail, with companies chasing revenue expansion like it’s the only path to success. But let’s be real—what are we really growing toward? In many cases, it’s not profitability. It’s about getting that next injection of investor funds, building momentum for higher valuations, and, for some, hoping profitability will just magically show up at the end of the journey.

It’s easy to get swept up in the allure of growth. After all, it’s flashy, exciting, and who doesn’t love a good hockey-stick revenue chart? But here’s the uncomfortable truth: growth doesn’t always equal success. In fact, in some cases, the focus on growth can distract companies from what really matters—building a sustainable, profitable business.

TL;DR

Let’s Be Real:
In the race for investor dollars, many companies are prioritizing growth at the cost of profitability. But is this strategy setting them up for success—or failure?

The Lowdown:
Chasing fast growth can mean big payoffs, but without sustainable profits, companies risk running on fumes. Balancing growth and profitability is the key to lasting success in today’s market.

What’s In It for You:

• 59% of investors now prioritize profitability over pure growth (PwC, 2025).

• Companies that balanced growth with profitability saw a 75% higher rate of survival over five years (BCG, 2025).

• Over 70% of consumers report preferring brands they believe are financially responsible and sustainable (Deloitte, 2025).

Growth as a Metric: What Does It Really Mean?

So, what are we talking about when we say “growth”? For many, it’s a broad term that can mean a lot of things—revenue growth, market share, new customers. It’s the sexy side of business that investors love to see, because it signals potential. But here’s the catch: potential doesn’t pay the bills.

A lot of companies, especially in the tech world, are laser-focused on scaling. Revenue is the name of the game, but what’s often missing in these conversations is profitability. Instead, the goal becomes “grow at all costs,” because more users, more revenue, and more exposure can mean higher valuations and more investor dollars. It’s a bit like running a race but forgetting where the finish line is—focusing so hard on the next round of funding that profitability becomes an afterthought.

The Investor Lens: Chasing Valuations

Here’s where things get really interesting. Investors, particularly venture capitalists, are often more interested in the potential to scale than in current profits. Why? Because they’re betting on the future. They’re pouring money into companies that promise exponential growth, hoping that eventually, that growth will lead to a big payday.

This creates a dynamic where companies are constantly on the hunt for the next funding round. They raise, they spend, they grow—without necessarily proving that their business model is sustainable. Sound familiar? Companies like Uber and WeWork come to mind. Both chased growth hard, but profitability? Well, that’s still a work in progress.

The result is what we call the “fundraising treadmill.” You’re running fast, but you’re not getting anywhere, at least not toward profitability. And while that can work for a while, eventually, the music stops, and you’ve got to prove that your business can stand on its own two feet.

Profitability: The Forgotten Goal

Let’s not forget why we’re all here: to make money, right? At least, that used to be the goal. But somewhere along the way, profitability got pushed aside in favor of growth. And while growth is important—don’t get me wrong—it can’t be the only focus.

Businesses that chase growth without profitability are like a house of cards. They’re dependent on continuous rounds of funding to keep things moving. But when the funding slows down, or when investors start asking harder questions, things can start to unravel pretty quickly.

On the flip side, profitability is the key to a sustainable business. It’s not as sexy as growth, but it’s what keeps the lights on. It’s what allows companies to weather the ups and downs of the market and, ultimately, what makes a company truly valuable in the long run.

The Balance: Growth with Profitability in Mind

Here’s the kicker: growth and profitability aren’t mutually exclusive. You can, and should, aim for both. But finding the right balance is where the magic happens.

To achieve this, companies need to move beyond conventional frameworks and really dig into what drives their audience at a deeper, more human level. We all know I love the Jobs to Be Done (JTBD) framework, and it’s a solid starting point, but let’s look at some other creative ways to truly understand the problems our customers face and deliver real value.

1. Empathy Mapping and Emotional Insights

Often, businesses focus on the surface-level problems—how to improve efficiency or save money. But what if the real pain points were emotional? Empathy mapping takes a deep dive into what customers are thinking, feeling, seeing, and doing in their everyday experiences. By understanding their emotional triggers, frustrations, and desires, we can design solutions that not only meet their functional needs but also resonate with them on a deeply personal level. It’s about getting into their heads and hearts, not just their wallets.

Example: Imagine you’re creating a health app. Sure, your audience wants to track their fitness, but what if the real issue is feeling unsupported on their journey? By mapping out their emotional highs and lows, you can create a more engaging, human-centered experience that offers community, motivation, and encouragement—things that keep them coming back beyond just functionality. Now that’s empowerment for the user.

2. Design Thinking for Problem-Solving

Design thinking encourages businesses to approach problem-solving in a non-linear, iterative way. It’s about starting with empathy (there it is again!), defining the problem in new ways, ideating without limits, prototyping, and then constantly testing and refining based on real-world feedback. The beauty here is the flexibility—it’s not about getting it perfect the first time, but about staying nimble, adapting to what the audience actually needs as you learn.

Example: Let’s say your initial product offering addresses one pain point, but through design thinking, you discover a whole host of adjacent needs. Maybe you designed a product to help with scheduling, but users also need help with communication and coordination. You can quickly prototype additional features and test them with small groups, making iterative improvements that keep you aligned with evolving customer needs.

3. Behavioral Science and Nudging

Sometimes, it’s not just about what your audience says they want or need—it’s about what they actually do. Behavioral science can give us profound insights into how customers make decisions, often in ways they’re not even consciously aware of. Using “nudges”—subtle changes in the way choices are presented—you can influence behaviors in positive ways, aligning your product or service with natural decision-making patterns.

Example: In e-commerce, simply tweaking how options are presented can lead to dramatically different results. By understanding cognitive biases like loss aversion or the decoy effect, you can present your offerings in ways that nudge customers toward solutions that are more valuable both to them and your business.

4. Jobs of the Future Framework

If you want to take JTBD to the next level, consider focusing not just on current needs, but on the jobs of the future. Customers’ needs are constantly evolving, and those who can predict and adapt to these emerging jobs will have a massive advantage. This approach requires businesses to stay ahead of market trends, cultural shifts, and technological advancements, anticipating how those changes will create new challenges and desires.

Example: Think about how the gig economy has exploded in recent years. What new “jobs” will emerge as remote work continues to evolve, or as AI starts to automate more tasks? If you can anticipate these shifts and build products that address the future state of your audience’s needs, you’ll not only grow—you’ll create a brand that evolves with your customers.

5. Immersive Ethnography and Customer Co-Creation

Finally, if you really want to get radical (I’m being facetious here - TBH this should be table stakes for orgs, but so many gloss over this and put themselves first. Sorry! You are not the customer persona most of the time), try immersing yourself in the daily lives of your customers. Ethnographic research involves observing and interacting with people in their real-world environments to gain a deeper understanding of their behaviors, challenges, and desires. By stepping into their world, you can uncover unmet needs they may not even be aware of themselves.

Even better, take it a step further with co-creation. Bring your customers into the process of creating your product or service. Let them actively participate in brainstorming, prototyping, and even designing the solution they need. This not only ensures you’re hitting the mark, but also creates an emotional investment in your brand that builds loyalty. My good friend Austin Baker, a co-creation and UX wizard, and I always joke about how organizations love to skip this step. You’d think it’s obvious, but apparently, it’s just too tedious and time-consuming for some. Spoiler alert: you'll be kicking yourself later for skipping it.

Example: If you’re developing a B2B software tool, rather than relying on abstract feedback, spend time on-site with your customers. Watch how they work, where they encounter friction, and what they wish they had to make their day easier. Then, invite them into the design process, making them part of the solution from the ground up.

Conclusion: Shifting the Narrative

It’s time to shift the narrative. Growth is great, but it’s not the be-all and end-all of business success. At the end of the day, companies need to ask themselves: What are we really growing toward? Is it just the next funding round, or are we building something that will stand the test of time?

The best businesses find a way to balance growth with profitability, and that starts by understanding the deeper problems of your audience. It’s not just about solving surface-level issues, but about digging deeper, anticipating future needs, and creating solutions that are not just functional, but deeply human. That’s how you build a business that’s not just big, but built to last.