From Growth at All Costs to the Fastest Path to Profitability: Outsourcing's Role in the New Economic Reality

Pre-pandemic, most startups favored rapid expansion and positioning for acquisition. Now, economic uncertainty is the reality for all businesses, including startups.

The new goal for these startups? The fastest path to profitability.

Our blog explores what influenced this change and how outsourcing fits into the equation.

The End of Growth at All Costs

In our State of Outsourcing survey, only 38% of respondents from the tech industry described their business model as “growth at all costs.

Some factors contributing to the end of this era are also presenting challenges that make rapid growth too costly and unsustainable:

• Layoff Trends
• Economic Uncertainty
• High Interest Rates
• Quality Management Concerns

Now, the focus is on profitability. Why?

Sustainable growth is the new mantra. Companies are prioritizing profitability over expansion, which allows them to establish a customer base and secure revenue streams that promote year-over-year growth. Plus, they'll be able to build a foundation that increases the opportunity for future expansion.

How are companies making the shift?

1. It's not all about full-time equivalent (FTE) anymore. Understanding annual recurring revenue (ARR) per employee is more important for profitability.
2. Calculate your burn rate, analyze financial metrics, and make some cuts for better-informed decision making.
3. Outsourcing is utilized as a strategic tool for cost restructuring, risk mitigation, and strategic insight.

How are you embracing sustainable growth strategies and prioritizing profitability? Learn how SupportNinja fits into the equation in our blog.