My conceptual idea of a flywheel business is one that continues to capture market growth in an automated way. With each proverbial flywheel rotation the business creates new growth and selling opportunities that will help it prevail long-term.
With our 2 latest products the goal in mind has been to automate and streamline processes as much as possible. For example, with CONCIERGEpad we have tried to make the on-boarding process automatic for a new user. A new user who wants to use or test drive the service can signup with their own username and password and log into the software in minutes. Also, the user has the ability to customize the product with their own business colors and logos. The entire process is standardized, universal and again automatic. There are other internal systems that we are trying to incorporate to leverage as much automation as possible. The idea here is not to be a robotic company but rather to position ourselves in the best way possible to sell and scale. My personal belief is that you don’t want to spend all your time engineering when starting up. It is easy to fall into this trap. Of course, a software business has to maintain the software but minor tweaks and updates is what’s necessary.
If you are not deeply invested into engineering and you have software that can function on its own this presents a unique and special scenario enabling the company to function like a flywheel business. You can now really focus on selling the software and putting it in front of as many eye balls as possible. Now it’s just Iterate, rinse and repeat. Around and around that flywheel goes…
A note on enthusiasm. I also think that enthusiasm needs to be part of this flywheel model as well. Enthusiasm or interest should serve as the lubrication or maintenance in this process. Often times a new software product will be interesting and new but with time not so much. When the enthusiasm is decreased the desire to innovate and keep the rotations going are impacted. The “oomph” always needs to be there. This is why a key component to this model in my opinion is the passion or desire to make the product work and be successful. This is what initiates movement and keeps it going.