How can you apply flywheel thinking to your company’s budget

What is flywheel thinking?

Flywheel thinking is a mindset that focuses on creating and sustaining momentum in your business. It’s about finding small, incremental ways to keep the “flywheel” moving forward so your company can continue growing and thriving.

There are three key components to flywheel thinking:

  1. Focusing on the long-term: When making decisions about your budget, it’s important to consider how those decisions will impact your company in the long run. Short-term gains should never come at the expense of long-term success.
  2. Seeing the big picture: In order to make smart budgeting decisions, you need to have a clear understanding of your company’s overall financial situation. This means looking at things like cash flow, profitability, and overall growth potential.
  3. Making incremental improvements: Rather than trying to achieve massive growth overnight, focus on making small improvements that will keep the flywheel moving forward. Every little bit helps, and over time those small steps will add up to big results.
    How can you apply flywheel thinking to your company’s budget?

    Look for ways to reduce costs

    When it comes to your company budget, flywheel thinking can help you find ways to reduce costs and increase efficiency. Just as a flywheel stores energy and momentum, so too can you find ways to store value in your budget by looking for ways to reduce costs.

For example, if you’re able to negotiate better terms with suppliers, you can free up money that can be reinvested elsewhere in the business. Or, if you’re able to streamline your production process, you can reduce your operating costs and improve your bottom line.

In both cases, the goal is to find ways to reduce costs without sacrificing quality or customer satisfaction. By applying flywheel thinking to your company budget, you can keep your business moving forward while also saving money.

Invest in growth

In order to apply flywheel thinking to your company’s budget, you should invest in growth. This means allocating more resources towards activities that will help your company expand, such as research and development, marketing, and new product development. By investing in growth, you can create a virtuous circle that will eventually lead to increased profits and lower costs. In the short-term, this may mean sacrificing some immediate profits in order to fuel future growth. However, over the long-term, this strategy will pay off.

Focus on your core competencies

In order to apply flywheel thinking to your company’s budget, you need to focus on your core competencies. What are the areas in which your company excels? What sets you apart from your competitors? These are the areas that you should invest in and grow.

There will always be temptations to spend money in other areas, but if you can keep your eye on the prize and focus on what you do best, you’ll be able to create a sustainable budget that will help your company thrive.


Flywheel thinking can help your company create a budget that is more responsive to your company’s needs. By thinking about how each budget item affects the flywheel, you can make sure that your budget is helping to drive your company’s success.

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