From Valuation to Value: Rethinking Growth in the Age of Noise
Guest article by Khurshed Dordi
In recent years, I’ve encountered countless pitch decks that resemble IPO trailers more than business plans.
They follow a familiar format — ten-slide narratives filled with exponential user growth, client acquisition milestones, and scaling roadmaps. Yet, conspicuously absent in many of these presentations is a simple, critical metric: profit.
Let me state it unequivocally — profit is not a dirty word. It is not something to be whispered about or excused in founder circles. But in an era where media headlines celebrate funding rounds over financial fundamentals, value creation has been overshadowed by valuation chasing. And the consequences of this misalignment are increasingly evident.
The Valuation Trap: When Growth Ignores Profit
Too many companies today are chasing momentum rather than building durability. They invest heavily in customer acquisition without pausing to consider key questions:
Are these the right customers?
Can we retain them profitably?
Do they genuinely need what we are offering?
This is not a criticism of ambition — rather, it’s a critique of distorted incentives.
I’ve witnessed companies secure Series A, B, and even C rounds while continuing to post mounting losses. The prevailing narrative? “We’ll figure out profitability later.”
Unfortunately, “later” often never arrives.
Instead, what follows is predictable: a funding slowdown, a down round, and a business model that doesn’t bend under pressure — it breaks. We've seen these cycles repeat across sectors — edtech, mobility, fintech. The names change. The patterns persist.
From Flipping to Building: A Strategic Reorientation
At some point, founders and leaders must confront the harder, more foundational questions:
Am I building a business or building to sell?
Would this model survive without external funding?
Am I chasing top-line growth or genuine traction?
If the ultimate goal is the next fundraising milestone or a high-profile exit, then one is not building — one is flipping. And flipping is not a strategy; it is speculation.
In contrast, value-creating businesses operate differently:
They prioritize margins over marketing burn.
They build meaningful client relationships — not just superficial reach.
They understand and leverage pricing power unapologetically.
A principle I often share with business leaders is this: “If your client isn’t willing to pay a premium, perhaps you haven’t articulated your value clearly enough.”
Sharpening Focus: Serving the Right Customers, Not All of Them
One of the most detrimental assumptions in early-stage growth is the belief that every customer is a good customer. In practice, this is rarely the case.
It is essential to gain sharp clarity on three dimensions:
Total Addressable Market (TAM): Beyond theoretical numbers, who truly needs what you offer?
Ability to Pay: Are your target customers willing — and able — to pay for the value you create?
Strategic Fit: Will serving them enhance your market positioning or dilute your proposition?
Neglecting these questions often leads to businesses that appear busy but remain unprofitable — more calls, more invoices, more stress, but less actual value.
Less Noise, More Signal
To be clear, I am not opposed to growth. But I am opposed to noise masquerading as progress.
The most resilient companies I’ve worked with are not those chasing volume — but those relentlessly pursuing quality. They seek:
Better clients
Stronger margins
Smarter systems
More thoughtful decisions
These businesses design for resilience — not for press releases. And they do not need to constantly broadcast their worth. Their numbers speak for themselves.
A Call to Action
As business leaders, investors, and advisors, we must create more space for substance over spectacle. We must challenge the glorification of speed, and instead, elevate conversations around sustainable growth and real value creation.
Closing Thought
Before your next conversation about valuation, ask yourself:
What is the true value I’m creating — and who would pay for it without hesitation?
In a world saturated with noise, value remains rare. And what is rare tends to endure.
