Knowledge Marketplace
My First Million

My First Million

The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.

Back to Mental Models

2% Weekly Improvement Compounding

Target 2% improvement every week across all business metrics, trusting compound effects over time even when individual improvements seem insignificant

Decision Rule

In every weekly review, identify specific 2% improvements possible in operations, products, or processes, regardless of how small they seem

How It Works

2% weekly improvement compounds to 170% annual improvement. Creates culture of continuous improvement and prevents stagnation during success periods

Failure Modes

Focusing on vanity metrics that don't impact business outcomes

Improving processes that aren't bottlenecks

Getting distracted by large improvements while ignoring consistent small ones

Not measuring improvements accurately

Example Decision

Instead of major product redesign, implement 2% cost reduction weekly through automation improvements, materials optimization, and process tweaks, achieving massive cost advantages over years