Knowing what business momentum means and its implications for your business is great. But even better, is knowing if you’ve got it. Does your business have momentum? Here’s how to find out.

One of the biggest dreams that most startup founders have when they first establish their business is becoming a unicorn. And why not? Seeing as there are only a handful — just about 450 — out of tens of thousands of startups around the world, attaining unicorn status is the equivalent of getting admitted into Mount Olympus.

But despite how highly sought after the unicorn status is, achieving real business momentum is a potentially higher reward, by several orders of magnitude. If you had the option between reaching $1 billion in value and breaking the $1 trillion mark, it’s obvious which one you’d pick.

While the former is the literal definition of a unicorn, you can reach and even surpass a trillion dollars with momentum on your side.

If you’re still grappling with understanding the concept of business momentum, trust me, you’re not alone. This is because the subject can be quite elusive. In almost a decade of building companies, I grappled with the concept of momentum for many of those years.

And when I turned to research, I found that most of the easily accessible information on the subject (on Google’s first page, for instance), is pretty thin and more than a bit impractical.

To correct that defect and provide a practical resource for founders that are just starting or for founders that have been in the trenches for quite some time, I started a series on everything about business momentum. To get a good grounding on what business momentum means and how it works, have a look at the first article in the series.

Today, I’ll answer one question that should come naturally to you as a founder, after understanding the concept of momentum: Does my business have momentum? This article explains how to identify momentum in your business.

What does momentum in business look like?

To get a practical understanding of how to identify momentum, we need to start with the theory of the concept. What does momentum in business look like? What characteristics define it, and what is the gist of these characteristics?

In his book, “The Compound Effect”, Darren Hardy describes momentum as the result of a planned routine that has turned into a rhythm, which is then carried out consistently. This provides some insight into the factors that make up momentum. With this in mind, the characteristics you should know about momentum are that:

It is organic

This is the first, and perhaps most important characteristic of momentum. It comes from the inside, not from the outside. Newton says a body will remain at rest until an external force acts upon it. But in the case of momentum, motion is internally driven. It starts with a conscious determination to achieve a set goal and the creation of a clear routine that gets it done.

Without this internally-driven motion, what you have is momentum spikes, rather than valuable prolonged momentum. When you push a motorcycle, it gains motion, but not momentum (unless you’re ready to run with it). But kick it into gear, and it quickly gains momentum. Why? Because it’s driven by sustainable, internal motion.

It is generative

Why is it said that success breeds success? Because it has momentum. One of the most enduring qualities of momentum is its ability to feed on itself. This also has a solid grounding in physics.

Newton’s first law of motion states that “…objects in motion tend to stay in motion…” and this is one lesson you can observe all around you. When you set a top spinning, it doesn’t spin once or twice and then falls on its side. As long as it has motion, it just keeps on spinning, even without any input from you.

So, imagine if a customer enjoys your product and tells others. Those also come, get a taste of your product and become hooked. Then they tell others, and those also tell others. With time, you find that you have to do less to bring more customers into our business. This ongoing effect is the generative power of momentum in action.

It is sustained

To grasp the most bang out of momentum, it has to be supported and maintained over a long period of time. This is effectively what is called prolonged momentum, as against momentum spikes. Momentum is able to really achieve its effects due to its continuous, consistent results over a prolonged period of time. That’s what makes it a very powerful concept for businesses. But again, momentum is not something you only wield. It’s more like an indicator or a mark on a period of the lifecycle of the business. You can start momentum up, you can be in it, and you can lose it.

If momentum is only experienced in spikes, then it is not real momentum. It becomes equivalent to only pushing a motorcycle for a few blocks or down a hill. When you either run out of hill or energy, the motion stops and with it, momentum. Although momentum cannot last forever, the sort of momentum that makes sense for businesses sticks around for a while.

It is protective

Have you noticed how difficult it is to keep a bicycle upright while standing still? If you don’t use a kickstand or brace with your feet on the ground, you and the bike will be eating some dirt. But when you get into motion, you don’t need a kickstand to keep it upright. That is the protective power of momentum. In its own nature, it wants to keep on going and growing. It’s like a beast that needs to be fed to stay alive with all the benefits of being alive that come with it. Its the same for business momentum. Once a business catches it or engineers it, that business will get into a groove, and once it’s in a groove-state, it will innovate faster and bounce back from mistakes more rapidly.

It is profitable

Last but not least, momentum is beneficial to your profits. It results in exceptional growth that sets a business apart. Keep in mind that what amounts to outstanding growth in various industries may differ. For some, it will be 82% growth, while for others, it will be 2%.

But when a business has momentum, it attains growth faster and at a lower overall cost than other companies. This growth will be in the benefit of shareholders over the long run. Exceptional growth will likely result in more market share, which will result in more potential customers that buy your products or services.

How to identify momentum in your business

Now that you know what momentum looks like, the next thing is to determine what the characteristics of momentum look like your business. To really get the hang of whether you’re gaining momentum or not, there are certain questions you should ask yourself.

These questions are key because there’s often too much focus on the end result of momentum — exceptional growth. But in order to really identify it in your business, you need to take a good long look at what you’ve done, from the roots up.

• Do you have a clear goal? Businesses that have momentum have a clear goal. For a company like Toyota, that goal was to provide products that take the customers’ preferences into consideration and create the perfect experience for them. For Amazon, it is its relentless focus on the customer in everything they do and say. Is your business driven by a specific value proposition? What is your business relentlessly focussed on, and how does that trickle down into everything you do in your business operations?
• Do you have an effective structure? The real momentum that analysts wax lyrical about is only possible with an established, effective structure. Are you working out your goals by focusing on the right angles, with the right team and processes? Do you have a clear plan (which is the structure I’m talking about) to execute on that singular focus?
• Do you have a stable brand driven by a superior product? Brands with momentum are known for delivering top-notch products that offer repeatedly and satisfactorily. They have their innovation locked down and are always on their toes to tweak and optimize their offerings where necessary. Are your products in line with the true wishes of your customers? Or are you holding on to your darlings while you should really be killing them off one by one?
• Do you have an enormous market? To say the least, businesses with momentum have a mother lode of customers crazy about their product. Take a look at Apple, for instance. It recently announced that the coronavirus outbreak might affect the supply of its products. While this would be a problem for most businesses, it’s almost a sure bet that this will only increase demand for the company’s products as its enamoured customer base fights to get their hands on limited stock. Just read Robert Cialdini’s Influence, and you’ll understand that a short supply creates only more love and affection for a certain thing. I’m not saying you should be downsizing your supply. I’m saying you should always know how your customers are thinking about your brand and product. Once they love your brand, momentum will come your way.
• Do you have exceptional, consistent growth? Lastly, a business that has momentum will display the most obvious effect of the phenomenon: consistent, explosive growth.

Conclusion

Although momentum can be quite elusive in practice, these characteristics will help you better understand the concept and how it works. If you sit and take an honest look at your business, bearing these factors in mind, you will quickly come to a realization of whether your business has momentum or not. And hopefully, it will stimulate you to go out there are chase that feeling of momentum yourself.