How to Run Your Startup in a Downcycle
The guide offers a comprehensive set of strategies for startups to navigate through economic downturns effectively. It advises on rigorous financial planning, including revising budgets to cut non-essential spending and extending cash runway. The importance of focusing on core products and services that are essential to customers is highlighted, suggesting startups should double down on what works and pause initiatives that don't contribute directly to survival or growth. It also covers the need for clear communication with stakeholders, maintaining a lean operation, and being flexible to pivot if necessary. The guide encourages founders to reassess their sales and marketing strategies to ensure they are targeting the most profitable channels and customers.
Why is relevant?
https://www.sequoiacap.com/wp-content/uploads/sites/6/2022/06/Adapting-to-Endure_Sequoia-Capital-2022.pdf
Author
Sequoia Capital
Publication date
May 1st, 2022
Difficulty
Advanced
Keywords
- Startup management
- economic downturn
- cost-cutting strategies
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