Short excerpt from a Mike Andes YouTube video explaining that four primary constraints—leads, capital, labor, and leadership—can limit company growth. Andes argues that when lead generation is low, customer acquisition roughly balances customer churn (loss), causing revenue and customer counts to stall unless more leads are introduced.
When I look at like a company that wants to grow, there's like several different things that will be the constraints. And either it's going to be leads, it's going to be capital, it's going to be labor or leadership. Any one of those, if there's a constraint, they'll stop the growth at 3 or 4 leads a month. What you're probably hitting is the fact that your churn like how many customers you just kind of regularly lose is equaling how many people you're just gaining every single week or month, right? So out of those, say three or four, you're probably adding two or three to the books. But what's also happening is out of your 100 customers, you're probably losing two or three. How many customers you're losing every week or month is kind of equaling how many you're gaining. And so you'll basically kind of stall out there unless more leads are put in.
