How big can your business get?

How big can your business really get?

The answer is surprisingly simple — and kind of magical (if you’re into Maths like I am):

📈 Business size limit = New clients per year ÷ Churn rate

(Assuming # of new clients and value per client stay constant)

Let’s say you bring in 20 new clients a year and your churn rate is 10%. Then your total client base will eventually cap out at 200 clients. Forever. Interesting isn't it?!

Why? Because as you grow, churn eventually equals new clients — and growth flatlines.

(See the chart above for a visual.)

This is why Churn and Retention matter so much — not just in theory, but in reality and right inside your financial model.

✔️ Measure them correctly

✔️ Model them transparently

✔️ Improve them deliberately

These metrics are make-or-break — for growth and for investors.