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It seems to be a modern business maxim that a failure to be constantly expanding is tantamount to total failure of the company. In reaction to that badly flawed business maxim, companies in stable markets with loyal customers are often all too desperate to bet the entire company on poorly chosen acquisitions or a risky entry into markets far from their core competencies.

Double digit revenue growth every year is not an achievable goal. Pursuing that goal at all costs will literally cost it all. Staying "totally safe" while markets shift around you won't win the race either (Norton vs. 3M), but when I saw a Cannondale sticker on a dirt bike, I admired the Ohlins shocks and then shook my head in dismay.

Venture capitalists are the worst of this kind of decision maker, but there are plenty of fresh faced MBA's in the world who have been convinced that lack of constant growth equals death. One wonders how many negative case studies they would have to see before considering the broader view.


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