Hajra Naz
During his time at Y Combinator, Sam Altman penned a blog post highlighting a phenomenon he called the “post-YC slump.” According to Altman, after completing the accelerator’s intensive three-month program, roughly a quarter of the startups were poised for massive success, potentially reaching valuations of billions of dollars. However, in reality, only a few achieved this level of success.
He expressed that these businesses experience significant growth during YC, followed by a period of minimal growth shortly after the YC program concludes.
Altman believes that the decrease in productivity can be traced back to activities he deems as unproductive, such as fundraising and publicity efforts, instead of concentrating on core tasks like product development and expansion. Ultimately, the issue arises from founders losing their drive and momentum.
Altman stressed that “building and maintaining momentum is crucial for a startup’s success.” “A business can overcome almost any difficulty if it has momentum. He believes that maintaining momentum is a key concept for companies and adheres to it.
Establishing a successful business demands consistent and focused work for an extended period, creating sufficient momentum to persevere through challenges. Learn how to initiate and maintain this effort regardless of the circumstances.
Why momentum?
In the field of physics, momentum is the result of multiplying an object’s mass by its velocity. A train moving quickly possesses momentum, as does a pitch thrown by a baseball pitcher. In the world of business, a notable illustration of momentum is seen in the concept known as the “flywheel effect,” which was introduced by Jim Collins, the author of Good to.
Good-to-great transformations do not occur suddenly, regardless of how significant the end outcome may be. According to Collins, creating a successful company or social enterprise involves a continuous effort without relying on a single defining action, grand program, killer, lucky break, or miracle moment.
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Instead, the process is likened to steadily pushing a large and heavy flywheel, making incremental progress until reaching a breakthrough and continuing to build momentum. Jeff Bezos, who discovered the flywheel effect from Collins in 2001, attributes it as the key factor contributing to Amazon’s enduring success.
Even thriving startups can falter and fail if they lose their forward motion. As Matthew S. Olson, Derek van Bever, and Seth Verry note in Harvard Business Review, when momentum is lost, it’s like the foundation of a company’s strategy has been pulled out from under it. Consider a speeding train: its massive size and velocity make it nearly unstoppable, but without a constant source of energy, even the fastest train will eventually come to a halt.
Just get started
You can’t gain momentum without movement. The key is to make those movements intentional.
Holly Liu, co-founder of Kabam, recommends establishing a well-defined objective that provides a clear answer to the question “What will success look like?” By setting a precise target, individuals can gain clarity, drive action, and ultimately attain their desired outcome. To stay on track and maintain momentum, Liu suggests assigning a fixed timeframe to achieve the goal, thereby preventing the pursuit from becoming aimless and losing steam.
Choosing a path and taking action, regardless of the size or timing of your decision, Liu. Deciding at a later stage can be time-consuming. On the other hand, if you are in the early stages, being quick and decisive gives you an edge because you can continuously adjust your course until you achieve and build momentum.
To overcome initial inertia, Forbes contributor Nell Derick Debevoise recommends a reverse approach. Rather than beginning with clear necessary next steps, try starting with tangible action and see where it leads.
Take action that you believe will help you move forward toward your goals. Afterward reflect on your reasons for taking that action, both for yourself and for others, such as employees, customers, and stakeholders. Debevoise recommends making these connections between your actions, motivations, and overarching objectives.
Embrace the 50/50 rule
One of the entrepreneurs I advise would frequently come to our meetings radiating confidence, eager to share the latest additions to his customer base. However, his exuberance would quickly dissipate when I inquired about the stability of his long-term customer relationships or checked in on the status of previous clients. He confessed that none of these customers had remained loyal, with each departure attributed to a unique reason or, in some cases, no explanation at all. Â
This entrepreneur pitching his product, but retaining customers over time proved to be a challenge. I suggested he concentrate on enhancing the product’s core value. However, despite his best efforts, he was unable to crack the code to make it an essential part of his customers’ lives.
Entrepreneurs often face this issue. It may require some to discover the ideal product, and many self-funded business owners lose motivation if they do not witness business expansion. Nonetheless, achieving growth involves two key aspects: consistently enhancing your product and attracting users to it.
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I advocate for a balanced approach, we’re dedicated to refining the product and the other half is focused on acquiring new users. This 50/50 ratio is essential for sustaining progress and avoiding stagnation. One of my mentees, who prioritized user acquisition over product development, ultimately struggled to maintain momentum. By allocating time equally between these two critical areas losing momentum and ensure continued growth.
Establishing momentum is crucial for achieving success. It involves initiating movement and can be sustained time evenly between improving your product and expanding your customer reach. The aim should be to create a business that functions like a high-speed train, difficult to halt once it gains momentum.
