Businesses grow in similar ways to the stock market. On a long timeframe, it appears to be a line sloping evenly through the period. If we zoom in on that same line, we realise it is filled with a pronounced movement of varying amplitudes mixed in with periods of stability. On aggregate, the results in the growth over time. That is not the experience of the day trader.

In many ways, the entrepreneur and her team are the day traders. Growth is unpredictable. It happens is short sprints. High energy, high functioning, high productivity timeframes that result in quick growth followed by some consolidation before the next one. Not unlike a heartbeat sinus rhythm.

For these sprints to be successful, we need to be operating below maximum capacity. We require stores of energy available to accelerate into the sprints before easing off again.

This feels like an inefficient use of resources. It is if you are only planning to finish a single sprint. They don’t last very long. If you are hoping to conquer the south pole, 20-mile marches work better.

Chris Liverani

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