Momentum is the product of an object’s mass and its velocity. It’s also the sole most crucial element for a startup.
During his tenure at Y Combinator, Sam Altman penned an article about what he dubbed “the put up YC droop.” Following the accelerator’s three-month program, Altman predicted that roughly 25% of participating startups would be on track to build a multi-billion-dollar company. Despite their good intentions, only a few actually followed through.
While YC startups experience exponential growth during the accelerator program, this momentum typically plateaus just a few months post-graduation.
Why? Altman suggests that the slump can be attributed to a misguided prioritization of “pretend work” – tasks such as managing finances and engaging in public relations – over actual value-creating activities, namely developing products and driving growth? As the entrepreneurial endeavour’s foundation, fundamentally, lies in the founders’ capacity to maintain traction and direction.
Momentum is the lifeblood of any startup – without it, even the most innovative ideas can stagnate. With momentum on your side, you are more likely to overcome a wide range of challenges. According to Altman, a lack of momentum is the primary obstacle for those struggling with their problems, and acquiring momentum is the sole solution that can bring about resolution. He stresses that a corporation must never falter in its momentum, citing this as one of his essential startup principles.
Building and sustaining an organisation demands a relentless, coordinated drive over an extended period, generating the necessary momentum to overcome obstacles and propel progress forward. Starting well is crucial – regardless of your approach, stay committed.
In the realm of physics, momentum arises as a direct result of multiplying an object’s mass by its velocity. A car practicing to tour at an excessive pace has momentum. With explosive velocity, a fastball hurtles towards the plate. Within the realm of enterprise, perhaps the most potent manifestation of momentum is the “flywheel effect,” a concept popularized by renowned author and thinker Jim Collins.
Regardless of the magnitude of the tipping point’s consequences, significant metamorphoses rarely unfold spontaneously; instead, they typically unfold gradually, through incremental and sustained efforts. Without a singular, game-changing moment, there exists no single catalyst, no overarching strategy, no isolated breakthrough innovation, nor a sole stroke of good fortune that propels the creation of an extraordinary organization or social enterprise. As relentlessly as spinning an immense, ponderous flywheel, the approach builds momentum through consecutive iterations, eventually culminating in a transformative breakthrough and beyond. The concept’s profound impact was first discovered by Jeff Bezos at a company retreat in 2001, who later referred to it as “the key sauce” behind Amazon’s enduring success.
Although some startups ultimately become successful companies, many others falter and fail due to their inability to maintain momentum. When momentum goes awry, it’s as though the foundation beneath a company’s technique has been stripped away, leaving it precariously balanced. The authors are Olson, Van Bever, and Verry. Given sufficient mass and an extreme velocity, little stands in its way. Without any driving force, even high-velocity practices will eventually grind to a halt.
You can’t achieve momentum without motion. Making the hot button intentional is crucial.
Kabam’s co-founder Holly Liu, by establishing a clear and quantifiable objective, addresses the question “How will we know when we’ve succeeded?” A well-defined goal brings focus, ultimately leading to successful execution. To avoid stalling and losing momentum, she recommends implementing timeboxed sessions that allow for focused work within a predetermined timeframe.
Despite the scale – whether large or small, at the pinnacle of success or just beginning – one crucial aspect you can control is charting a path and making choices that shape your future. Adding a course later on comes with an increased cost, thereby requiring a longer timeframe. “Although arriving early has its advantages, the real benefit lies in the velocity it affords, allowing you to chart a course, make adjustments, and repeat the process until you achieve momentum and tangible progress.”
Even for those just starting out, Forbes contributor Nell Derick Debevoise suggests a fresh approach by flipping the script. Let’s skip the traditional thinking and dive straight into action – imagine starting without a clear goal or plan in place, instead allowing momentum to guide us forward.
Take immediate action on a single task that you thoroughly comprehend and can confidently tackle, thereby propelling your progress forward. By articulating a clear vision for the company’s messaging and communication strategy, you can effectively convey your intentions to yourself, as well as to internal stakeholders such as staff, and external parties like prospects and other stakeholders, thereby ensuring a cohesive and consistent message across all platforms. By drawing connections between the motion, your underlying motivations, and the broader context, you’re able to uncover deeper insights that can inform your decision-making process.
The founder I mentor typically walks into our regularly scheduled meetings exuding excitement about the fresh leads and opportunities he’s successfully pursued. While it was pleasant to encounter him in such an enthusiastic state, his excitement would noticeably wane upon my inquiry into his long-term earning potential or follow-up on previous clients. Admittingly, he acknowledged that none of the individuals remained stationary – each had a specific reason for departing, or in some cases, vanished altogether.
This entrepreneur was remarkably adept at marketing his innovative solution. However, when it came to retaining them for the long haul, he consistently struggled. Suggest that he focus on enhancing the product’s quality and functionality. Despite his diligent efforts, he struggled to find a method that would render it truly inescapable.
One of the most common pitfalls faced by entrepreneurial ventures is… For bootstrapped founders, finding the right product can be a hit-or-miss process that saps their initial momentum and enthusiasm if it doesn’t yield the desired results for their startup. Despite these challenges, true progress necessitates not one, but two crucial elements: consistently refining your product and attracting individuals to utilize it effectively.
I believe that a founder should dedicate at least half their time to enhancing the product, ensuring it remains innovative and competitive, while the remaining half should focus on acquiring and retaining customers to drive growth. I propose the concept of the 50/50 rule as a vital principle for maintaining consistency in our endeavors, ensuring that we strike an optimal balance between progress and stagnation. Although my mentee excelled at handling the latter task, he struggled with the preceding one, as his excessive focus on advertising, marketing, and sales hindered his progress, causing him to stall. Divide your attention evenly between tasks, thereby reducing the likelihood of exhaustion.
Building consistent momentum is crucial for achieving lasting success. To gain momentum, some effort is necessary at the outset; consistent progress can then be sustained by allocating equal attention to developing your product and expanding your customer base. The aim is for an organisation to function like a high-speed train in perpetual motion – once it gets moving, it’s difficult to slow down.
