Navigating a downturn as a first time founder
It’s becoming clear that 2023 is shaping up to be a tough year. Between dismal predictions of the macroeconomic climate, tech companies conducting layoffs and hiring freezes, and VC funding drastically changing from the free-flowing, growth-focused market of just one year ago, it’s a daunting time to be a startup founder.
To win, you’ve got to stay in the game
To do that, you need to efficiently manage through lean times
- Watch expenses
- Get tight on core priorities
- Increase profitability
- Re-prioritize near-term (next 6 month) opportunities that can generate revenue and reduce burn
Rethink Ways of Working
When the business needs change, your role and practices should also change.
Reshaping how you show up as a leader to get through leaner, winter times is something that should be considered as the business continues to grow and change
Stay flexible and data-informed
Track leading indicators: Identify and track leading indicators to inform day-to-day decisions and hiring decisions. Exercise caution with reactivity: Determine how confident you are in the information and what the potential impact is.
Differentiate between items that you’ve recently heard and are reacting to and items that have been thought about deeply.
Encourage transparency
It is a disservice to filter information, and a mark of respect to invite team members into the conversation as they face upcoming difficulties.
Share transparently, directly, and kindly and commit to creating space to address fears and feedback afterward as we move forward together.
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