#business #entrepreneurship #time-optimisation #optimizers #philosophy #rationality #world-optimization #efficient-execution #non-profit #growth #optimization #expansion #contraction #specialization #generalization #market #industry #financial-resources #risk-appetite #competition #balance #success #mental-model Created at 180423 # [Anonymous feedback](https://www.admonymous.co/louis030195) # [[Epistemic status]] #shower-thought Last modified date: 180423 Commit: 0 # Related - [[Business/Entrepreneurship/Time optimisation]] - [[Business/Entrepreneurship/Entrepreneurs are optimisers]] - [[Philosophy/Rationality/Overoptimization]] - [[Business/Entrepreneurship/World optimisation]] - [[Business/Entrepreneurship/Efficient execution]] - [[Business/Entrepreneurship/Non profit does not scale]] # Growth vs optimization In nature, some plants and animals prioritize growth, putting all their energy into reaching their full potential size as quickly as possible. Others focus on optimization, utilizing resources efficiently to achieve maximum survival and reproduction without necessarily being the biggest or fastest. Similarly, in business, companies must decide whether to prioritize rapid expansion or methodical efficiency, depending on their goals and circumstances. Some animals have developed a strategy of specialization, where they have adapted to thrive in a specific niche environment, while others have developed a strategy of generalization, where they are able to survive in a wide range of environments. In the business world, similar strategies can be applied where companies can specialize in a specific market or industry, or they can diversify and offer a range of products and services across multiple markets. Both strategies have their advantages and disadvantages, and it ultimately depends on the company's goals and resources. [[Expansion & Contraction]] says that businesses go through cycles of growth and contraction, with periods of expansion followed by times of consolidation and optimization. During an expansion phase, companies may prioritize growth, investing heavily in acquiring new customers, entering new markets, and developing new products or services. However, as the business matures and the market becomes more competitive, companies may shift their focus towards optimizing their operations, streamlining processes and reducing costs. This can involve consolidating their product lines, eliminating underperforming divisions, and focusing on improving customer experience and loyalty rather than just acquiring new customers. Ultimately, whether a company prioritizes growth or optimization will depend on a range of factors, including the industry they operate in, their financial resources and risk appetite, and the level of competition in their market. However, regardless of the approach they take, businesses that are able to strike a balance between growth and optimization are most likely to succeed in the long run.