Ep 180: Expansion math: when a new site actually makes you poorer

Ep 180: Expansion math: when a new site actually makes you poorer

May 19, 2026 · 12 min · Season 5 · Episode 68

About this episode

This episode discusses the pitfalls of business expansion and how it can lead to reduced profitability.

Send us Fan Mail A second location, a new service line, a broader geographic footprint, expansion feels like the logical next step for a business that has found its footing. But for many founders, it is precisely where profitability begins to quietly unwind. This episode confronts the expansion illusion directly: the belief that more locations automatically mean more profit. Stuart and Mena explain how revenue growth can mask margin compression, duplicated overhead, and the cultural and opera...

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