Flywheel

A self-reinforcing business model where each component drives the next, creating compounding momentum that makes growth progressively easier and faster as the system accumulates energy over time.

A flywheel is the foundation of sustainable competitive advantage. Unlike linear growth strategies that require constant external effort, a flywheel generates growth from its own momentum, with each new customer or piece of content feeding the next cycle.

A marketplace founder attracts buyers, which attracts more sellers, which increases product variety, which improves buyer experience, which attracts more buyers. Each step feeds the next, and the flywheel spins faster over time without proportional increases in marketing spend.