Growth loops are important for your business.
They allow one investment or input to create continuous returns.
Instead of getting stuck a linear system where you have to continue finding inputs to sustain an output, your output is consistent.
Here’s a visual:
Reid Hoffman's advice
Reid Hoffman mentioned the value of growth loops in a recent LinkedIn post.
He explained that VCs loved them because of their compounding effect.
Then he gave some ideas for applying those compounding principles.
- Build a relationship with a superconnector — a partner who has tons of relationships you’d love to have more access to (probably a sumo)
- Create an asset that helps you build your brand — something that makes working with you more appealing to your target customers and partners
- Grow your network — increase those partnership nodes
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