Flywheel

Definitions

1. A self-reinforcing business cycle where each component accelerates the next. Amazon's flywheel: more customers → more sellers → more selection → lower prices → more customers. Unlike funnels (linear, leaky), flywheels compound over time. Once spinning, they're hard for competitors to replicate.

   In plain English: A business cycle where each step makes the next step easier, creating a self-reinforcing growth loop.

   Example: "The data flywheel: more users generate more data, which improves the ML model, which attracts more users."

Related Terms

• Blitzscaling
• Product-Led Growth
• Network Effect
• Growth Loop
• Inflection Point
• Product-Market Fit
• Total Addressable Market
• Series A
• North Star Metric
• PLG