There are precarious times when in business. I’d like to draw attention to the two most precarious times: high growth and slow decline.

The ideal state of a business is sustained growth, a nice gentle line that trends upwards.

A bad state, obviously, is a sharp downward slope. The only positive behind a sharp downward slope is that it’s obvious, you have to react to stop the bleeding or you have to cut your losses.

A not as obvious state of danger is a slow decline. Having a metric slowly go downhill is dangerous. The trend takes longer to see. People can still remain apathetic. It’s the kind of thing where people say “how did we get here?” If your performance metrics are trending down, even just by a small amount, be on your toes.

Probably the most dangerous times are high growth. If your metrics are off the chart it’s a time to celebrate… cautiously. Growth is good, sustained growth is what we want. If you have a peak, be critical. Is it a fluke? Is it sustainable? Be conservative, put money in the bank, don’t overspend. High growth leads to high emotion and that can lead to poor decisions. Get to a sustained growth and you’re golden.