2% better every day

The law of compounding efforts can lead to amazing results

Raymond Hannes
2 min readOct 5, 2021

It is the end of 2020, and it is time to reflect. For starting founders this is often discouraging because we are not seeing enough results of our efforts right now. There is a tendency for founders to overestimate what they can achieve in the short run, and underestimate how much they can achieve in the long run.

But there is a trick to become more realistic in the short run and get great results in the long run, and it is called the law of compounding efforts. We work with founders and corporate innovators, and we will tell them that they need to get to at least €50.000 Monthly Recurring Revenue (or MRR) by the end of the first year in order to have a viable business. The initial response is usually one of disbelief, because as we mentioned before, founders have the tendency to underestimate how much they can achieve in the long run. We then always ask 2 questions:

  1. Can you get to €100,- MRR by the end of the month?
  2. Can you then improve that with 2% every day

Somehow, founders do not seem to think that is a daunting task. Yet the result after 12 months of becoming 2% every day the MRR on day 365 is almost €140.000,-. Much higher than the €50.000,-

Of course, not all things can grow at an exponential rate forever. But by focusing on getting a little better every day, and having an appreciation for the law of compounding efforts, founders can more readily play the long game.

Maybe after the first year the goal is to become 5% better every week, or 10% better every month. Just appreciate the law of compounding efforts and keep asking yourself how are we going to become X% better every day/week/month.

And of course there is more to life than Revenue. But this works for every variable that matters to you. It can be followers on Instagram, your steps, CO2 captured or saved, whatever variable matters to you.

Founders: learn to appreciate that small habits compound over time!

What variable are you picking to become X% better every day/week/month? Leave a note in the comments