profitable-efficient-growth

Source framework: Sam Jacobs' Profitable Efficient Growth (PEG) — the rebuttal to "growth at any cost." Built on the Unit Economics Compass (per-unit profitability as the decision filter for whether to scale or optimize), PEG's benchmark thresholds (LTV:CAC at or above 3:1, CAC payback under 12 months, NRR above 110%, Rule of 40 at or above 40%, magic number above 0.75, burn multiple under 1.5x), a retention-over-acquisition / customer-led growth thesis, and the Tranche Strategy for GTM spend allocation (60% proven / 30% probable / 10% experimental).

Purpose & When to Use

Most growth plans start from the wrong question — "how much can we grow?" — when the question that actually protects the company is "can we grow this efficiently?" In the "growth at any cost" era, teams scaled top-line revenue while quietly digging a financial hole: acquisition spend outran the value each customer returned, payback stretched past the point where cash ran out first, and churn ate the gains. Sam Jacobs' Profitable Efficient Growth (PEG) is the correction. Efficiency isn't the reward you earn after growth — it's the prerequisite for it.