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Why are we growing but losing money?

Growth that does not cover contribution and CAC payback is a more expensive way to stay still.

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The short answer

Revenue up and cash down is usually contribution margin too thin, CAC that pays back after the cash runs out, or both. The useful questions are: on the next dollar of revenue, what is left after cost to serve, and how many months until acquisition spend returns? If those are unknown, more growth is not a strategy.

How to tell this is actually your problem

The move that usually makes it worse: Raising more money to fund the same unit economics at a larger scale.

When Percision is the wrong tool

Percision is the wrong tool if you already know the answer and only need execution capacity, or if the business is pre-revenue — then the constraint is evidence about the market, not analysis of your own figures.

If it is your problem and you want the analysis on your numbers, the live page is https://percision.app/we-are-growing-but-losing-money. The engine routes this question to Cost & Margin Improvement. Metrics that decide it: contribution margin · CAC payback.

Industry variants: Professional services · Banks & financial services · Healthcare providers · Healthtech / digital health · Logistics & supply chain · E-commerce & DTC · Manufacturing · Construction & trades · Retail · Real estate & property · Fintech

Strategy School lesson: cac-above-ltv

Questions people ask

Is this a pricing problem or a cost problem?

Whichever the contribution waterfall says. If contribution is fine and cash is not, look at CAC payback and working capital. If contribution is thin, more volume makes it worse.

When is Percision the wrong tool?

Percision is the wrong tool if you already know the answer and only need execution capacity, or if the business is pre-revenue — then the constraint is evidence about the market, not analysis of your own figures.

Should we pause growth?

Pause the growth that does not pay back. Keep the line that does. 'Pause everything' and 'grow through it' are both slogans.

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