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Note 062 min readSpeed Is Revenue

The hidden tax inside a $10M company

Somewhere between $5M and $15M, coordination cost starts compounding faster than revenue. Most P&Ls don’t have a line for it.

There’s a tax every growing company pays and almost none of them can see. It shows up as a five-day workflow that used to take an afternoon, a decision that takes three months instead of three days, and a team that’s busier than it’s ever been while the number stays flat.

The tax is time, and time is the only resource that compounds in both directions.

Where it hides

At $2M, one person does a thing. At $10M, four people do it with two handoffs and an approval. None of those steps was a bad idea when it was added. Together they’re a massive, quiet drag on every dollar that moves through the business, and the drag grows faster than the revenue does.

A $30M creative agency was spending five days turning one approved design into fifty placements. By hand. Wild. It was “just how we do it,” which is nonsense nobody had questioned. Five days per campaign, multiplied across every campaign and every pre-approval round. The fix lived in tools they already owned. No magic. Three hours.

Faster makes money

Getting to market four months sooner is four months of revenue captured. Cutting production time frees capacity you can sell without hiring. Compressing a decision from three months to three days means you respond while the opportunity is still open.

Speed isn’t an efficiency metric. It’s a revenue metric wearing a stopwatch. And the gap between a fast business and a slow one compounds.

How to find yours

Pick the three things your company does most often (a proposal, a deliverable, a decision) and time them, end to end, including the waiting. Then ask who added each step and whether they still work here. The answer is usually a process set years ago by someone who has since left, and never revisited because it never felt urgent.

Know where this has to go, and not how?

Twenty minutes. Tell me where you want this company to be in two years and I’ll tell you what I’d go look at first.