Be patient for growth, but impatient for profits

Think small is beautiful. If your goal is to secure a foothold in the marketplace - that is.

Realising profits early are one of the best signs that you are on the way to a successful venture.

Management does not realise that pushing for fast growth can be detrimental as players, motivated by competitive instinct, will pile innovations into the marketplace. Without the benefit of hindsight, these innovations prove to be a poor fit with customer needs.

With profits in the bag, a certain degree of traction is assured. You will naturally feel confident to spend further time and resources ( you need working capital and capex to grow the market - implies more risk ) to establish the market. More importantly, you can afford the luxury of iterating your way till you find the right fit to meet the needs of your customers and make money. Your just reward - growing your business.

Adapted from: An article from Clayton M. Christensen, a professor at Harvard Business School