Years ago, I worked as an M&A advisor with Laszlo, the owner of an HVAC business. Over time, he became one of our best customers, snapping up every service we offered—valuation, acquisition advisory, capital raising—you name it.
Laszlo was a mix of challenging and entertaining to work with. His curiosity and self-reflection made him a fun client, despite the occasional frustrations. But his company’s growth pattern? That was a head-scratcher.
The Grasshopper Syndrome
His business alternated between rapid growth spurts and stagnation. We called it “grasshopper syndrome.” Laszlo rationalized the flat years as “consolidation,” but the truth? His explosive growth periods strained his team and systems so much that he had to hit the brakes to avoid imploding.
This pattern isn’t unique. I recently reviewed their 2024 performance with another fast-growing client, and guess what? Same hangover effect after two years of meteoric growth.
The 20-Mile March
I shared with them Jim Collins’s “20-mile march” analogy from Great by Choice. It’s based on the 1911 race to the South Pole between explorers Roald Amundsen and Robert Falcon Scott.
- Amundsen’s Strategy: March 15-20 miles daily, no matter the weather.
- Scott’s Approach: Push hard in good weather, rest during storms.
Result? Amundsen’s team won by 33 days and made it back alive. Scott’s expedition? Not so much.
How the 20-Mile March Helped Amundsen’s Team:
- Energy Management: Consistency avoided the extremes of exhaustion from overworking on good days or stagnation during bad days.
- Psychological Stability: The daily routine fostered predictability and control, reducing stress and morale issues.
- Minimized Risks: Pacing reduced the likelihood of frostbite, injuries, and other risks from overexertion.
Collins explains how “10x Companies” consistently outperform their peers by growing at a steady pace. Compare that to companies with uneven, grasshopper-like growth—they often end up stuck or burned out. Tools like the Scoreboard Sketcher™ can help you track consistent progress by focusing on key weekly metrics to maintain that steady pace.
SaaS vs. People-Driven Businesses
“But what about tech unicorns?” you might ask. Sure, SaaS businesses can scale rapidly. Their products aren’t bound by the constraints of adding new staff for every new customer.
But for people-driven service businesses—consulting, engineering, construction—rapid growth often means chaos. As David Maister outlines in Managing the Professional Service Firm, growth over 20% annually typically stretches these businesses too thin, leading to poor hiring, reduced profitability, and a diluted company culture.
Why Consistency Wins
Investors know the value of consistency. Capital markets reward the stocks of companies with steady growth by assigning them higher multiples. CFOs often go to great lengths to maintain even growth—building reserves in good years and cushioning the impact of lean times.
But this isn’t just about financial optics. Consistent growth enables methodical hiring, training, and system-building, laying the groundwork for scalable success. Regular Mentor Meeting Model™ check-ins can also play a crucial role, ensuring your team remains aligned, motivated, and equipped to handle the challenges of growth. These one-on-one conversations help maintain focus, address roadblocks, and reinforce a culture of accountability and progress.
Compare that to the chaos of onboarding a flood of new clients while juggling an overwhelmed team:
- Quality issues creep in, damaging customer trust.
- Your people face relentless pressure and burnout.
- Morale dips as staff lose confidence in their leaders.
This ripple effect can undermine your long-term ability to attract talent and sustain growth. Consistency isn’t just practical—it’s the foundation for building a resilient, scalable, and profitable business.
A Lesson from Aesop
Aesop nailed it 2,500 years ago with The Hare and the Tortoise. Slow and steady may not be glamorous, but it’s effective. Here’s the kicker: a “Tortoise Business” doesn’t have to grow slowly.
Consistently growing revenue and profit margins by 20% annually can triple the value of your business in just three years. That’s the power of a steady, disciplined approach.
So, ask yourself: Are you building a Hare or a Tortoise business?
Ready to craft your own fast-appreciating Tortoise Business? Check out the Summit Operating System™ here.
