Beware the law of compound growth loss
It’s only the end of January, and already you’re thinking that you may have made one major strategic error. And you know that if you’re right, it will hobble your business growth this year. (How do I know this to be true? I’ll show you tomorrow.)Here’s why you need to act on that concern now. It’s called the law of compound growth loss, and I’ve illustrated it in the two diagrams below.
First, let’s take a look at what happens if you act now, correct the mistake and get back on the right path:
Here you can see that while you have lost some ground because of your early mis-step, your quick recovery means that by the end of the year you’re not far behind your original goals. You also have all of the rest of the year to recover the lost growth and get fully back on track.
Contrast that with what happens if you wait say another say three months to act on your concerns:
Here you can see that (1) you end the year far further behind your original business growth targets, and (b) you have much less time to recover from the effect of the original mistake.
Tomorrow I’ll show you what the most common ‘early growth errors’ are, then we’ll find out how to check if your gut is right – have you really made a mistake or not?