Vijayaragavan’s Essays

Share this post
Expected Growth vs Actual Growth
www.vijayaragavan.com

Expected Growth vs Actual Growth

Vijayaragavan Venkatarathinam
May 31, 2015
Comment
Share

When we launch a new product or business or blog, initially there will be no takers. Slowly, users will start to trickle in. This goes on for some time. But then something happens. There is an inflection point. Users start to come in droves and business starts growing exponentially. This usually happens when your product or business achieves the magical product-market fit.

But we don’t subscribe to this idea when we start working on our new product/business/blog. We expect and root for linear growth like the one shown below.

In reality, it is an exponential growth like the one shown below.

In the graph, ‘X’ axis is time and ‘Y’ axis is a variable. You can plot any variable that you select for growth, say, revenue of the company, revenue of a recently launched product, number of readers of the blog etc. It is always exponential.

Let us see how this applies in the real world. I picked few publically traded companies and checked their revenue growth.

Consider revenue growth of Infosys since it listed in NASDAQ (circa 2000).

Consider revenue of Google from its various products.

Consider revenue of Apple from its several pathbreaking products such as iPod, iPhone, iPad.

All of them are exponential.

CommentComment
ShareShare

Create your profile

0 subscriptions will be displayed on your profile (edit)

Skip for now

Only paid subscribers can comment on this post

Already a paid subscriber? Sign in

Check your email

For your security, we need to re-authenticate you.

Click the link we sent to , or click here to sign in.

TopNew

No posts

Ready for more?

© 2022 Vijayaragavan Venkatarathinam
Privacy ∙ Terms ∙ Collection notice
Publish on Substack Get the app
Substack is the home for great writing