The Era Of Unicost

We have gotten drunk on the promise that a business doesn't need to be profitable. 

It just needs to show strong signals of growth, and cash will follow. 

We have shifted from a "margin story" to a "growth story." 

As long as we can show fast growth, we are crushing it. 

Growth has become the dominating narrative in our culture. 

Tech or the perception of being a tech company is the logic. And an Evangelical leader is the magic. 

The new value formula is "Fast Growth + Tech + Evangelical Leader = $$$$$"

But not all growth is the same as we have learned with the Wework saga. 

There is sustainable growth and fragile growth.

What's the difference?

Sustainable growth is not exploitation that's fragile growth. 

Paying below the minimum wage is not sustainable. 

At some point, the most vulnerable class is going to rebel as we have seen it in many developing countries. 

Sustainable growth is not monopolization that's fragile growth. 

Blocking your competitors is not sustainable. 

At some point, companies are going to be forced to break up. We have seen that movie before. 

Sustainable growth is not just cost-cutting that's fragile growth. 

Focusing only on trimming your cost is not sustainable.

At some point, you need real innovation. We can only play the cost-cutting game for a limited period. 

Sustainable growth is not a narrative that's fragile growth. 

Trying to position yourself as a tech company without being tech business is not sustainable.

At some point, the market will realize that there is not unique tech. 

Today, we are getting sober from this narrative of growth at all costs.

The market has become smarter about the cost of unicorns and started to penalize all of them.

Perhaps, the era of Unicorns might be coming to an end.

We are now shifting from a "growth story" to a "margin story."