Business Growth and What it Teaches Us
Businesses in today’s fast-paced network face the daunting task of launching new products and ideas while the upper hand is held by society’s industry giants. These small underdogs often get their product out as easily and quickly as possible, leading to their inevitable end from being built on such unsustainable growth. There is one factor that these businesses are forgetting. Although it may be nice to get the quickest and biggest amount of profit possible, forgetting this simple game-changer is what keeps companies like Disney, Apple, and Microsoft on top of the game. These successful businesses always have one common priority: the point of exponential growth.
The Point of Exponential Growth
The point is the phenomenon that occurs when the growth rate of the value of a mathematical function is proportional to the function’s current value, resulting in its growth with time being an exponential function. So in layman’s terms, it’s the point at which a number starts growing faster and faster the more time goes on.The point of exponential growth is responsible for all of today’s popular products and trends. A great example of something that is happening today is the exponential growth of processing power in computers. From 1938 (when the first fully digital computer was created) to 1969, a time frame of 31 years, there was no discernible upgrade in computing technology besides a few kilobytes of extra storage data. Then in 1970 with the invention of the microprocessor and the advent of at home computers, the growth rate of computer processing power multiplied on itself tenfold within the next two years. With the advent of the microprocessor came the computer industry’s point of exponential growth. This example is easy because there is an easily recognizable point at which it occurred. Normally though, things happen at much more of an under the radar kind of way. That’s when the math becomes important. One of the most common examples of exponential growth deals with bacteria. Bacteria can multiply at an alarming rate when each bacteria splits into two new cells, thus doubling. For example, if we start with only one bacteria which can double every hour, by the end of one day we will have over 16 million bacteria.
Using the rules of exponential growth, and applying them in business situations creates one common point of truth about being successful, patience. Time is the one qualifier in the exponential growth equation that always moves forward at a constant rate. Thus, the more time that has passed, the more likely you are to see an exponential growth in your business. Seems like common sense, but when you look at the businesses of today and how they’re modeled after quick and easy ways to success, you can see how this common factor of time can be forgotten.
To put it simply, the point of exponential growth teaches us to be patient through the only constant variable in the equation. By no means does it mean sit down and relax. Without someone inventing the microprocessor it would’ve taken a lot more time for computers to reach their processing power of today. What patience really means is to keep innovating, keep up the hard work, and keep your eyes on the future because not before long, you will have your own point of exponential growth.