Growing Your Startup at an Optimal Rate

As a startup CEO or SMO, one of the most important metrics to consider is your growth rate. A good growth rate for startups can be defined as a steady and consistent increase in customers, revenue, profits, or any other key metric. In this blog post, we will review what constitutes a good growth rate for startups and how you can exceed it.
Growing Your Startup at an Optimal Rate

What is a Good Growth Rate?

The definition of a good growth rate for startups depends on the type of business model you are looking to build. Generally speaking, for high-growth companies with asset-light models such as software companies and subscription businesses, a 50% annual growth rate is considered good. On the other hand, if you’re running a more traditional business such as manufacturing or retail where growth rates are typically lower due to the need for investments in assets and infrastructure, 20% annual growth should be considered good.

Tips to Exceed Your Growth Rate

1. Focus on Customer Retention: Focusing on customer retention can help you exceed your desired growth rate by ensuring that your current customers remain loyal and engaged with your product or service. Keeping customers happy not only reduces churn but also increases the likelihood that they will refer new customers to your business.  

2. Invest in Audience Expansion: You should always be investing in audience expansion initiatives such as SEO optimization, content creation strategies, and social media campaigns that target new markets and audiences with your products or services. This will help increase brand awareness and expand your reach beyond just existing customers.

3. Analyze Your Data Regularly: Data analysis is essential when it comes to understanding customer behaviors and optimizing operations for better performance over time. Utilizing analytics tools like Google Analytics can help you gain insights into customer acquisition costs (CAC) versus lifetime value (LTV) so that you can make better decisions about how best to scale your business over time.


Achieving a good growth rate for startups requires thoughtful planning combined with data-driven decision making processes. By focusing on customer retention initiatives while simultaneously investing in audience expansion strategies and utilizing data analysis tools regularly, you can set yourself up to exceed your desired growth rate over time and remain competitive within your industry landscape. With the right approach and careful execution, there’s no limit to what kind of success you can achieve!

Aarni Kotiranta


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