EP 43 : Scale vs Profitability: When Growth Becomes Unsustainable w/ Anthony Coombs

Scale vs. Profitability: Navigating Growth ChallengesIn this episode of the ASOM Pod, hosts Jimmy Kim (CEO of eCom Email Marketer, formally Founder of Sendlane), John Roman (CEO of BattlBox), Amer Grozdanic (CEO of Praella), and special guest host: Anthony Combs (CEO and Founder of Splendies), and as we dive deep into the topic of 'Scale vs. Profitability: When Growth Becomes Unsustainable.' The team kicks off with a discussion on EBITDA, venture money, and the challenges of flipping business models from growth-focused to profit-focused.The hosts dive deep into real-life business case studies like American Apparel, MoviePass, and Nasty Gal, the podcast explores the pitfalls and lessons learned from these once high-flying enterprises. The episode also touches on recent hot topics like 23andMe's bankruptcy and data privacy issues. Key takeaways include the importance of a sustainable business model, understanding customer acquisition costs, and the challenges of expanding into retail and wholesale channels. Don't miss our 'Guess That Business' segment, where the panel dissects the downfall of 23andMe and more. Tune in for an engaging conversation covering e-commerce, retail, SaaS, and beyond!****Big shoutout to our sponsors who make this podcast possible!Omnisend — With 125,000+ eCommerce merchants, Omnisend is the all-in-one email & SMS marketing platform built to deliver seamless, personalized experiences with ease. Learn more at https://www.omnisend.com/Nacelle — Transform your eCommerce store with AI-powered product recommendations that understand your customers’ actual behaviors, not just their purchases. Learn more at https://www.nacelle.comWorkspace6 — The best community for 7, 8 & 9 figure+ eCommerce operators. Why struggle alone? Other founders have already solved your biggest challenges. Learn more at https://www.workspace6.io Subscribe to our newsletter! We drop weekly hot takes, totally unfiltered. Join us at https://asompod.comCome hang out with us IRL - https://commerceroundtable.com****00:00: Intro trailer00:47 Debate: Best City in the World (Not Chicago)03:02 Welcome to the ASOM Pod03:41 Guest Introductions and Banter05:50 Main Topic: Scale vs. Profitability12:01 Challenges of Entrepreneurship25:55 Omnichannel Strategies for D2C Brands31:11 Hypothetical Business Scenarios34:40 The Venture-Backed Business Model35:11 The Business Model of VCs36:16 The Role of Big Corporations in Acquisitions38:04 The Rise and Fall of American Apparel45:28 MoviePass: A Case Study in Business Failure52:11 Nasty Gal: From Garage to Bankruptcy55:21 Guess That Business?01:01:58 Wrapping Up and What's Next_____Follow Jimmy Kim at: X: https://www.twitter.com/yojimmykim Linkedin: https://www.linkedin.com/in/yojimmykimIG: https://www.instagram.com/@yojimmykim Tik Tok: https://www.tiktok.com/@yojimmykimFollow Bryan MacDonald at:X: https://www.twitter.com/bryanomasprideLinkedIn: https://www.linkedin.com/in/bryan-macdonald-ctIG: https://www.instagram.com/@anythingbutasaladTik Tok: https://www.tiktok.com/@anythingbutasaladFollow John Roman at: X: https://www.twitter.com/@JohnMRomanLinkedin: https://www.linkedin.com/in/john-roman/IG: https://www.instagram.com/@johnnyromesTik Tok: https://www.tiktok.com/@johnmromanFollow Amer Grozdanic at: X: https://www.twitter.com/@AmerGrozdanicLinkedin: https://www.linkedin.com/in/amer-grozdanicIG: https://www.instagram.com/@amergrozdanicTik Tok: https://www.tiktok.com/@amergrozdanicContact us at hello@asompod.com for sponsorships, appearance requests, interviews, or general information!#asompod #businesspodcast #businessinsider #entrepreneurship #entrepreneur #ecommercepodcast #ecommerce #ecommercebusiness #ecom #dtc #dtcpodcast #ecommercetips