You may be sitting in your business thinking that there is lots of activity happening and you are getting a lot done. However, if that activity is not manifesting as cash, profits and sales at the end of the day, then there may be something wrong.
In this video, I talk about a concept I use in my business consulting sessions to explain why the speed of your business may not be the best indicator for how well your business is actually doing:
When you understand this critical difference between speed and velocity, you can get yourself in a better mindset to run your business effectively.
If you would like to hear more about this please feel free to get in touch below.
Prefer to read rather than watch and listen? No problem – here’s everything I said in the video as text:
What I want to talk about today is the difference between speed and velocity. And how understanding this difference can influence your day-to-day working in your business.
Let’s define speed
Now speed is generally defined as how fast an object is moving; 20 miles an hour, 120 miles an hour. So if the object is not moving, the speed is zero and obviously, if there’s a lot of movement happening – a lot of frenzied activity happening – there is high speed.
Now velocity on the other hand…
The velocity is defined as the rate at which the object changes its position. So for example, imagine you are at point A and you take one step forward, and you take one step backwards and come back to the original point A. In this case, your speed could be 40 miles an hour, but your velocity will be zero because the displacement has been zero. So velocity would be defined as 40 miles an hour, in the forward direction.
Why lots of activity isn’t necessarily good in business
Now when you think about this, there could be lots of frenzy activity, lots of pace, lots of action, a lot of activities getting implemented in your business. But the question that you need to ask as a business owner,
‘Is it leading to positive displacement?’
‘Is it moving me in the direction that I want to move?’
Because just having speed in the business is not sufficient, what you need to do is you need to choose the velocity over speed. Because that’s where movement in the right direction at the right pace happens.