There are five common small business mistakes experienced during accelerated growth. Alongside these mistakes, companies often prioritize speed over velocity. Today, this article will explore why a business should consider emphasizing growth with velocity rather than growth at speed.
Table of Contents
- What is business velocity?
- Why does business velocity matter?
- How can you increase business velocity?
What is business velocity?
In physics, velocity is defined as a vector measurement of the rate and direction of motion. But we are not in physics class, are we? To dive in, understanding what velocity means in a business context will be crucial. Velocity in business is how long it takes a company to achieve certain milestones measured in days, hours, or minutes. It is the amount of work that is completed in a given time. Furthermore, velocity exists in all business functions, including product or service, sales, and marketing.
Why does Business velocity matter?
In times of business growth, it’s essential to look at the velocity instead of just spinning wheels and not achieving anything. Velocity helps to:
- Reveal how long it takes to complete certain milestones allowing more structured planning.
- Ensure consistent performance over time.
- It makes it easier to evaluate the efficiency of newly implemented strategies, as velocity will drop, increase, or stay constant, reflecting how the change impacts the business’s performance.
- Stay on track of milestones instead of losing focus during accelerated growth.
- Be prepared for any obstacles by continuously diagnosing, planning, implementing, measuring, and correcting.
How can you increase business velocity?
Every business functions and performs at its best in different ways, but standardized tips to help increasing business velocity as follows:
- Identify the proper measurement for the company and each department.
- Be flexible and ready to implement change as needed.
- Establish clear communication and transparency throughout the entire organization.
- Centralized the goal, ensuring that all projects tied back to the overall goal of the business.
Ensuring business velocity is moving the business in the right direction. Remember, velocity is more important than speed. Start your Free Trial to handle both accounts payable and receivable to remain focused and save time by reducing manual work and automating through Plooto.