Last month I had a call with an ecommerce seller and he explained how over time his sales were growing, but his bank accounts were getting smaller. He was making money when he started, but now the business felt like it was consuming him financially.
More revenue will not solve your problems if your margins are too tight. Every dollar of new revenue comes with its own cost — more inventory, more ads, more fulfillment, more returns. If your unit economics are broken, scaling only makes the problem bigger. Fix the margins first. Then grow. Revenue is a multiplier — it multiplies both profit and loss, depending on your underlying structure.
