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Kayode Odeleye

How are founders dealing with the downturn / recession

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The economic climate especially in tech is unlike any we've seen in the past two decades How is everyone dealing with the uncertainty? Limited funding options, lower customer purchasing power etc Powering on as usual or thinking twice about building?

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Hemant Warier
First and foremost, it's important to stay flexible and adapt to the changing market conditions. This means being open to new opportunities and being willing to pivot your business if necessary. For example, during the pandemic-induced recession, many companies had to shift their focus to e-commerce and digital platforms to keep their businesses running. Another crucial strategy is to focus on cash flow. In times of economic uncertainty, it's essential to have a solid financial plan in place to ensure that your business has enough cash to stay afloat. This might mean cutting costs, increasing sales, or even seeking outside funding. It's also essential to communicate effectively with your team and customers during a downturn. Your team needs to know what's happening with the company and how it will be affected. And, when it comes to customers, transparency and honesty are key. Be upfront about the challenges your business is facing and how you plan to address them. Lastly, I believe that it's vital to stay optimistic and look for opportunities to grow, even in the toughest times. The downturn or recession may provide opportunities to invest in new technology, products, or markets. It's up to the founder to stay sharp and proactive to identify those opportunities and make the most of them. In conclusion, dealing with a downturn or recession as a founder is not an easy task. But, if you can stay flexible, focus on cash flow, communicate effectively, and look for opportunities to grow, you'll be well on your way to weathering the storm. If you're feeling overwhelmed or need advice on how to navigate through this difficult time, don't hesitate to reach out to me on LinkedIn. I'd be happy to share my experience and help you come up with a plan to keep your business afloat.
Kayode Odeleye
@hemantwarier thanks for your useful insights. I believe as well there are opportunities to grow. Founders need to consciously seek these though
Moon
I think during a downturn or recession, many business owners, including startup founders, may find it challenging to maintain their revenue and profitability. Here I wanna share some tips that are help to reduce the downturn. Cutting costs Adapting the business model Increasing marketing and sales efforts Diversifying revenue streams Building cash reserves Seeking funding It's important to note that every company will have different situation and will need to find the strategy that works for them and that may also depend on the type of industry or sector they are in. And it's important to remember that a recession is not forever, and that the economy will eventually recover. I think this will help for you!
Murali Gottumukkala
Its very simple, Survive by nook and crook. Cut your cost and protect your baby!!! We just have to weather this storm
Kayode Odeleye
@murali_aasaan I love your mentality. I cringe when I hear founders giving up at the first hint of trouble "by hook or crook"
Richard Gao
I'd say if you're just starting out, your costs are probably so low anyways there is really no way to cut them further. A lot of ppl also forget to add personal finances to this list. Since if you're bootstrapping or working on a side project, you still have to pay the bills!
Kayode Odeleye
@richard_gao2 Not everyone Richard, you're right though. Proper entrepreneurs start with low costs but there are lots of spoilt ones in the past few years