As revenue grows, the risk reduces for a startup. More accurately though, the risk shifts to more controllable or predictable things. One of the biggest types of risk that come on later on involves decisions to invest in growth.
Investing in growth means bringing on board more people in the hope they build the business bigger. It means committing cash flow to salaries. The time delay to the payoff of those hires is variable determining the degree of riskiness.
Sometimes in order to grow, you have to raise venture capital. Then you have the risks involved with dealing with investors and a board of directors. If things do not work out as hoped, there may be down rounds or other negative consequences introduced by those investors.
So it can be tempting to be complacent. To avoid growth.
We are making moves to grow right now. We are doing that with our existing cash flows and are excited about the future of our business.
What are your thoughts on taking risks to grow?
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