How to Build a Business Flywheel (and Why It Beats Funnels)
TL;DR: A business flywheel is a self-reinforcing system where each action strengthens the next, creating compounding momentum. Unlike funnels (linear and draining), flywheels are circular and sustainable. To build one:
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Pick a core activity (newsletter, onboarding, content).
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Map how each step reinforces the next (write → repurpose → CTA → sales → growth).
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Remove friction and accelerate momentum.
Flywheels work for businesses of any size, from Amazon to solo founders. I just came off a webinar with the CEO of Kit and he build Flywheels to grow his business.
Why Flywheels Beat Funnels
Funnels are linear. You pour in leads, some leak out, a few convert, and then you start over.
Flywheels are circular. Every action reinforces the next, building momentum that compounds over time.
Amazon, HubSpot, and Kit (and little ole me) all credit flywheels as a big part of their growth. You can do the same.
What Is a Flywheel in Business?
A flywheel is a self-reinforcing system. Think of a heavy wheel: at first, it’s hard to push, but each turn gets easier. In business, a flywheel forms when your activities naturally feed into each other.
Funnels extract. Flywheels build.
Step 1: Identify Your Core Energy
Ask: What’s the one activity I can do consistently that fuels growth?
Examples:
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Publishing a newsletter
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Delivering great onboarding
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Creating YouTube tutorials
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Asking for referrals after each sale
Step 2: Map the Loop
Example: My Newsletter Flywheel
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Write newsletter
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Repurpose into LinkedIn/Substack
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Create short posts
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Add CTAs
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Drive sign-ups or course sales
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Grow audience and proof → back into newsletter
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Step 3: Remove Friction
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Newsletter with no CTA → no conversions
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Good onboarding without referrals → missed growth
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Content without distribution → no reach
Find where momentum stalls and fix it.
Step 4: Accelerate Momentum
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Automate content repurposing with AI
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Run ads to your newsletter or freebie
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Add testimonials to increase conversion
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Partner with others for reach
Examples of Business Flywheels
Referral Flywheel: Happy customers → referrals → more customers → more referrals.
Content Flywheel: Create pillar content → distribute → generate leads → build authority → more content opportunities.
Customer Experience Flywheel: Success → retention → reviews → easier sales → more customers → more success stories.
FAQ: Business Flywheels
What is an example of a flywheel strategy?
Amazon’s flywheel: lower prices → more customers → more sellers → better experience → lower prices.
What is the difference between a funnel and a flywheel?
Funnels are linear and transactional. Flywheels are circular and compounding.
Can small businesses use flywheels?
Yes. Even a simple loop—publish → promote → sell → collect testimonials → publish again—creates momentum.
Final Word
Funnels end. Flywheels keep spinning.
Start with one core activity, map your loop, remove friction, and accelerate. Over time, the wheel will spin on its own, creating sustainable, compounding growth.
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