Rule of 40 Composition Comparison
Scenario A (Growth Trap) vs. Scenario B (Software Winner)
Scenario A: Growth-Led
Growth is "bought" at the expense of unit economics. High manual intervention.
50%
Growth Rate
-10%
Profit Margin
Scenario B: Margin-Led
Compounding from genuine PMF. Highly profitable unit economics.
10%
Growth Rate
30%
Profit Margin
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