When is the belief “more customers mean better business” actually false?

It’s easy to assume that the more customers a business has, the healthier it is. However, this myth can cause major damage, especially if the business is not ready to scale or is attracting the wrong kind of customers. More customers can sometimes mean more operational chaos, higher churn, and lower profitability.
Why more isn’t always better:
Wrong customer segment: Not every customer is a good fit. Some may demand too much, pay too little, or damage your brand.
Strain on infrastructure: Sudden increases in customer volume can overwhelm support, delivery, and quality control.
Cash flow issues: More customers don’t always mean more revenue if pricing or payment terms are weak.
Dilution of value: Focusing on volume over quality can shift a business away from its core strengths.
Customer service suffers: Rapid growth can compromise the customer experience if systems aren’t scalable.
The best businesses focus on serving the right customers well, not just attracting more.
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