Growth Strategies and Cultural Considerations for Startups


Hatched by Glasp

Sep 13, 2023

3 min read


Growth Strategies and Cultural Considerations for Startups


Startups are propelled to success by their founders' determination and ability to recruit users manually. In the early stages, it is crucial to provide users with an exceptional experience, even if the product is incomplete or buggy. Growth in startups requires a specific mindset and a focus on compound effects. This article explores various growth strategies, channels, and the psychology behind virality. Additionally, it delves into the importance of cultural understanding and how it influences the success of startups.

Recruiting Users Manually and Creating Value:

At the beginning, founders must manually recruit users, focusing on providing them with an exceptional experience. The key is to make up for any product limitations with attentiveness and a commitment to improving the user's value. By adopting the right psychology, startups can foster growth through compound effects, where user actions increase value for all.

Acquisition and Activation:

Understanding where users are coming from and optimizing their journey is essential for growth. Identifying the marketing channel with the highest volume, lowest cost, and best performance is crucial. Additionally, focusing on the user's first experience and conducting landing page and A/B tests help determine the "Aha Moment." Increasing customer lifetime value and decreasing customer acquisition cost contribute to a healthy growth ratio of CLV:CAC = 3:1.

The Hook Model and Content-Driven Growth:

The Hook Model, similar to growth loops, emphasizes the compound effect. By building habit-forming products through triggers, actions, rewards, and investments, startups can create a cycle of growth. Content-driven growth can be divided into SEO vs. virality and user-generated vs. editorially-generated content. Finding a niche, starting small, and giving reigns to passionate individuals contribute to the success of content-driven growth.

Virality and Retention:

Understanding the psychology behind virality is crucial for creating a product that exhibits viral growth. Leveraging concepts such as social proof, the Etsy Effect, and gambling psychology can help drive virality. Additionally, focusing on status, identity projection, and voyeurism can motivate users to share and engage with the product. Retention is key to sustainable growth, and creating sticky products that users engage with is vital. Levels of growing engaged users, retaining users, and creating self-perpetuating loops contribute to long-term success.

Cultural Considerations for Startups:

Expanding into different markets, such as Japan, requires understanding the local culture, networks, and ecosystems. In Japan, attention to detail and a focus on craftsmanship are highly valued. Additionally, hospitality plays a significant role in the success of a product, as it encompasses not only the product itself but also support, sales, and customer success. Hiring the right talent and aligning with the company's core values, such as craftsmanship, are crucial for success.


To achieve sustainable growth, startups must adopt the right mindset and focus on compound effects. By optimizing acquisition and activation, leveraging growth models like the Hook Model, and understanding the psychology behind virality, startups can achieve exponential growth. Additionally, cultural considerations and hiring the right talent contribute to the success of startups. Three actionable advice for startups are:

  • 1. Focus on providing an exceptional user experience, even with an early product.
  • 2. Optimize acquisition channels and user activation to increase customer lifetime value.
  • 3. Leverage the psychology of virality to create a product that users want to share.

In the end, understanding the power and health of growth loops is critical for startups to focus their efforts and achieve sustainable compounding growth.

Hatch New Ideas with Glasp AI 🐣

Glasp AI allows you to hatch new ideas based on your curated content. Let's curate and create with Glasp AI :)