MOMENTUM: THE SINGLE MOST IMPORTANT THING
Written by Jessica Murray
“Momentum to me is the single most important thing in anything we do…In business, if you don't have momentum, you have no business.” - Michael Ovitz, co-founder of CAA, on The Knowledge Project
I listened to this episode of The Knowledge Project recently, and the brief segment with that quote stood out.
Ovitz went on to talk about momentum in life and business, and his perspective that it’s more art than science. He described momentum as something earned through disciplined effort and deep understanding of your craft.
If you’re an entrepreneur, you know momentum matters. You can feel the difference between being stuck in the mud and the magic of things coming together in a way that gives you confidence that you’re onto something.
The reason I paused when I listened to Ovitz talk about momentum is that he stated it very bluntly: If you don’t have momentum, you have no business.
I understand what Ovitz is getting at. For example, if nobody is paying you, you don’t have a business. However, I also push back. I don’t view momentum as all-or-nothing, especially in the early phases.
It’s built over time and reinforced with intentionality. Framing it as binary loses sight of the smaller, compounding signals that are often the earliest evidence you're building something real.
Think of the classic flywheel. That heavy wheel doesn’t go from stopped to fast in an instant. The initial effort to push against inertia is tough. Eventually, the wheel starts turning, picking up speed, bit by bit.
In that sense, momentum is a culmination of actions, not one big push.
When it comes to building momentum in business, I’d encourage entrepreneurs to get skilled at recognizing three things:
Early positive signal indicators.
The internal conditions that must exist to support momentum.
The leaky buckets that quietly (or not so quietly) kill it.
The signals indicating positive things are building
Most of the time, momentum isn’t the result of a lucky break. It shows up in patterns and a series of smaller moments. If you only think about it in terms of a “big moment” or the “huge breakthrough,” you’ll actually miss the chance to notice the smaller pickups, reinforce them and build the stronger flywheel.
This could look like:
Shorter sales cycles.
Organic mentions or referrals.
Consistent growth in inbound leads.
Organic social media follower growth.
Lower churn.
Expansion revenue.
Attracting top-tier talent.
Margin expansion.
Improved unit economics.
Importantly, founders need to make sure they’re looking in the right places so they don’t miss those moments.
The signals may be different from business to business. The key is to be thoughtful about monitoring the right core set of quantitative and qualitative measures showing that momentum is taking hold. None of these alone is “the breakthrough.” But, together, they signal strengthening demand and improved execution.
The internal conditions that allow momentum to take hold
There are certain factors founders can’t control. But, you know what they can influence?
The internal company environment.
Markets shift. Capital tightens. New competitors emerge. Actively shaping internal structures better ensures momentum can be sustained.
Five conditions I see make a difference at early-stage organizations:
Focused priorities: Too many initiatives dilute progress. Concentrate efforts on what’s actually going to propel the business forward.
Simple operating rhythms: Build the weekly, monthly, quarterly and annual rituals that build predictability and allow you to surface issues sooner.
Delegated decision-making: If every decision only runs through the founder, the business can only move as fast as that one person.
Strong communication: Clarifying goals, expectations and accountability accelerates execution and reduces friction. When a team understands what to do and why it matters, things happen faster (and with less overhead).
Ownership mentality: When everyone on the team thinks and acts like an operator, impact compounds. This doesn’t mean the same level of investment as the founder, but it does mean each person owns their lane without prompting.
If the people, process and technology that form the foundation can’t support growth, momentum will expose the cracks.
The leaky buckets
Even when the flywheel starts turning, it’s not an autopilot situation.
The leaky buckets are the things that can stall a business out if left unattended.
They may look like:
Customer churn goes unnoticed because it gets offset by new revenue wins.
Inconsistent service delivery that chips away at trust.
A burnt-out team that can’t sustain the pace required.
Customer acquisition costs become unsustainable.
Poor reviews.
Fewer expansion revenue opportunities.
Growth can hide problems. Revenue can go up, but morale deteriorates. New customers come in, but older ones get fed up. Instead of letting these leaky buckets turn into a flood, build in the mechanisms and establish the right metrics so you can detect these issues quickly and can effectively adapt.
In summary
Momentum isn’t magic. It’s not binary. It’s also not accidental. You build it through focus, reinforcement and discipline.
Know the signals. Build the optimal environment. Plug the leaks.