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Scaling to $1M ARR
Profitability vs growth tradeoffs
In 2026, the Growth at all costs era is over. Investors want to see Sustainable Growth.
- The Burn Multiple is how much cash you burn to get $1 of new ARR. If you are a student bootstrapping (using your own money), you must prioritize Profitability early to survive.
- If you have a massive market and strong competition, you might choose to burn cash to win the market. If you are in a niche, focus on being Default Alive (profitable enough to survive without more funding).
Free Resource:Balancing the Growth vs. Profitability Tradeoff
Resources
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