A brief transcript excerpt of Jason M. Lemkin discussing growth challenges for small businesses: as companies scale (around $10M revenue), churn requires very high growth to sustain net expansion, leading to the claim that businesses need double-digit monthly growth to overcome churn. The excerpt also contains an interlocutor comparing conference-business scale examples.
And on the way up, it's sort of okay because the hustle is exploding and there's viral elements and it's great. But eventually gravity, that's the, you got to be honest about gravity and come up with a strategy to address it. Right? For small business. Is that, that, that math just, it's, you know, and I think you would echo this around 10 million in revenue. You need so much growth to overcome that churn, right? You need like epic, epic, like you can't even, it's not even what your gut says as a founder you need. So you need double digit growth per month. Here's the insight. You need double digit growth per month to overcome that churn at scale, right? You need double digit. And you, you need to understand which.
Business you're in. So you're in the conference business now. I was in the conference business, sort of. I think my conference business was doing over the handful of years, I think we probably did 3 million in revenue. You do 30 million in one year. So we're not in the same ballpark.
