Trappola for growth: the error that your company can compromise

Growing up is the dream of every entrepreneur, but what happens when this growth becomes a problem? Many companies succumb to the so -called “growth trap”, a phenomenon that can compromise the profitability and sustainability of the company, in particular in a demanding economic scenario such as 2025.

Incessant growth for growth can lead to hasty decisions, such as the expansion of product lines without a solid planning, debt control or expansion of the operation without considering long -term financial impacts.

“Growing up without control does not mean thriving. The quality of growth is more important than growth itself and companies that grow too quickly without a structured financial strategy can be lost in the way. Aggressive growth objectives, poorly planned acquisitions or impulsive diversifications generate organizational entropy, making management difficult and reducing profitability “, explains Tiago Barros Belo, co -histic of Healthtech Vitta, sold in Stone.

The company administrator, graduated from the Federal University of Uberlândia and Post -Laurea in finance applied by Insper, certified by the leadership program of the Harvard Business School, has distinguished itself for its precise analysis of the challenges of corporate growth.

Despite challenges, companies can maintain an optimistic perspective. According to the entrepreneur, there are opportunities for sustainable expansion: the risks, however, cannot be ignored. Among the main factors of concern for the Brazilian economy in 2025, the expert indicates high interest rates and inflation and tax imbalance.

And how to avoid the trap for growth? Tiago Barros underlines three fundamental steps:

• Evaluation of the strategy: Before expanding, it is necessary to evaluate whether the macroeconomic scenario and sector trends indicate a good growth opportunity, which will not always make sense for the business model.

• solid financial management: Monitor financial indicators such as the contribution margin, the operating lever and the cash flow help to grow in a sustainable way, especially in view of the provision of high interest rates.

• Concentrate on efficiency: Growth without structure can lead to the quality of products and services. “Successful companies are the ones that grow by maintaining efficiency and profitability,” says the expert.

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Source: Terra

Rose

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.