4 Ways To Build A Growth Flywheel For Your Business | Ep 790
episodePreviously titled “4 Ways To Build A Growth Flywheel For Your Business | Ep 809” — renamed by the publisher on Aug 2, 2026
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What is a growth flywheel and why is it important?
welcome to the game every business needs a growth flywheel and in this podcast i'm going to show you four different tactics to basically building the growth flywheel within the business so that eventually it doesn't require you to put the effort and money to advertise and promote it to drive growth but let the business itself create the inputs that then create the outputs So every business begins with effort and money from the founder or investors that begin the business. And this is kind of the initial call it the spark that starts the business. So this goes into the business long term. You don't want effort and money to go into the business. If anything, you want those things come out of the business. But it starts with the inertia. We have to get it going.
How does initial effort and investment create momentum?
And so from there, you begin to get customers, right? So you advertise, you sell, and people come in the door and they buy your stuff or they go to your site or whatever. Now, once customers come in, they get some sort of result. Now, after they get the result, you then have some sort of reviews or word of mouth that those results will generate. And then that can then in turn get you more customers. And so this initial effort of money goes into the system. That gets you customers, those customers get results. Those results drive reviews and word of mouth, which then get you more customers.
What role do customer results play in business growth?
The problem is, most businesses don't have a good process, and so all they have to do, their wheels look like this, effort and money, customers, result, more effort and money, customers, result, and they end up dumping a lot of effort out this way. And so this creates a linear system where all you do is you have to put more in and you get more out. And that's okay, but if you want to build a system that becomes an asset that can grow itself, then what you want is something called a flywheel. And so a flywheel is a self-reinforcing system where every action or component builds momentum and drives the next, creating sustainable growth over time. And so in business, It refers to a strategy where activities like customer satisfaction, word of mouth, referrals, and product improvement, so this is what they get from the result, improve and feed each other, making the whole system stronger and more reliable. So, let's talk about the four tactics to actually make this happen.
So, tactic number one, before I explain what this very poorly wrapped gift is, I'll tell you a story. When Layla and I were out in a different area traveling for some speaking thing, she had to go get her hair done or something. And so she quickly was looking on Yelp to try and find a good hair person. And when she was there, she looked at the reviews, unsurprisingly.
How can businesses leverage word of mouth for growth?
And so there was one that had a five star but had like 20 reviews, and another had like a 4.6 stars but had 1,000 reviews. Which one do you think she went to? the 4.6 stars with 1,000 reviews. And so the question is that how much was each of those incremental reviews worth if the person who has the most reviews ends up getting 90% of the search volume? Well, a hell of a lot. Should we be willing to pay for reviews, not directly but indirectly? And the answer is yes. Provided it's legal within your area, obviously laws apply for advertising. Here's the two-part tactic. So number one is that after you've delivered service for whatever it is, so whether you're a plumber and you go to a house or you're a waitress and you just served a customer, after you've delivered the value that you deliver with your core product or service, you then offer a free gift. Now that gift is gonna be relative to the amount of money that someone spent.
If we've done a good job, we will have banked a little bit of reciprocity. And so then at that point, and this is the key part, the person who gives the gift is not the person who necessarily asks for the review. So then either the manager of the restaurant, the shift manager, somebody who is representing that person then says, hey, by the way, if you leave a review, we give this person $50.
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Chapters
7 chapters
1
What is a growth flywheel and why is it important?
0:13–0:59
2
How does initial effort and investment create momentum?
0:59–1:36
3
What role do customer results play in business growth?
1:36–2:57
4
How can businesses leverage word of mouth for growth?
2:57–4:50
5
What is the first tactic for building a review flywheel?
4:50–8:14
6
Why are reviews critical for business success?
8:14–15:14
7
How can merchandise help in customer retention?
15:14–18:01