Definition
A business model where multiple reinforcing loops build momentum over time, so each part of the business makes every other part easier.
Why it matters for growth
A flywheel explains why some companies grow faster the longer they operate, since each cycle reduces friction or cost for the next cycle.
Example
Amazon's flywheel: lower prices attract more customers, which attracts more sellers, which increases selection, which attracts more customers, reinforcing the whole cycle.
FAQ
- What is Flywheel?
- A business model where multiple reinforcing loops build momentum over time, so each part of the business makes every other part easier.
- Why does Flywheel matter for growth?
- A flywheel explains why some companies grow faster the longer they operate, since each cycle reduces friction or cost for the next cycle.
- What is an example of Flywheel?
- Amazon's flywheel: lower prices attract more customers, which attracts more sellers, which increases selection, which attracts more customers, reinforcing the whole cycle.