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About A Smart BearHow can a business that is "spending to grow" determine whether it's truly profitable underneath all that "revenue acceleration?" Here's a way.
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A Smart Bear · Jason Cohen
articleprincipleSource excerpt
About A Smart BearHow can a business that is "spending to grow" determine whether it's truly profitable underneath all that "revenue acceleration?" Here's a way.
This is a limited feed-provided excerpt, not the full original work.
Apollo layer
Evaluate SaaS profitability separately from discretionary growth investment: model what the existing revenue base and operating structure could earn in a steady state rather than treating every growth expense as proof of healthy economics.
Fast growth can obscure whether the underlying business creates durable value. Separating core economics from growth investment helps founders judge efficiency, set spending levels, and avoid scaling an unprofitable model.
Build a steady-state scenario: if you paused expansion spending today, which revenue, service costs, and operating expenses would remain—and what profit would the current business produce?
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