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by braythwayt 2505 days ago
As a customer, this is a problem for me.

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Analogy: I offer to cut your lawn every week, and to shovel your driveway/walk when it snows, all for an annual fee you find attractive.

I get a lot pf customers, put together a pitch deck, then raise a bunch of money to expand.

With the money, I buy a fleet of massive snowplows, trucks that can carry ride’em mowers, equipment for doing landscaping, and while I’m at it, I start up a property management company that specializes in AirBnB owners.

“Sorry,” I tell you, “But I have to raise my fees, your property is too small for me to take a advantage of my equipment, and Also it’s inefficient to have lots of small customers so I’m tacking on a per-invoice surcharge.”

Lawn-cutting can indeed grow into a bigger business, and for me, that’s great. But for you, maybe the best thing would be to hire a teenager who is happy cutting lawns for a decent price.

Summary: If a company is in business A, but it isn’t happy doing A and really wants to do B, C, and D to satisfy its investors’ ambitions, that may be an excellent play for the company, but a terrible play for its existing customers.