Sailing Your Startup Through Stormy Waters

Running my first company during the big bubble burst of 2000/2001 left an indelible mark on me as a young entrepreneur navigating through very stormy waters. These days feel similar, with a combination of financial, business and security? difficulties, on a global as well as national and private scale, 2024 will likely be a difficult year for many companies. Yet, my experience is that if you maintain discipline, times like these can turn out to be very rewarding and educational on multiple fronts. I wrote this blog a few years ago, and? given our current reality, its lessons remain highly relevant today.

The lessons you learn in bad times are far more valuable than the good days and therefore, the achievements you reach are far more satisfying. Below are eight tips to manage your startup in stormy waters and come out even stronger when the tide clears.

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1. Focus on your clients.

Clients are always the most important aspect of your business. In tough days, even more so. When a client is happy, even in tough times, that’s a great indication of a good company/product. Be in touch with your clients and ensure them you are around and thriving. These days are not easy for them either, so let them know you are there to support their needs. I’m sure you will benefit from this dedication in the future.

2. Re-examine your strategy.

During periods like these, it's easy to overlook that they not only pose challenges but also create massive opportunities. Re-examine your strategy. You may discover the need for a more pessimistic outlook on certain aspects of your plans. Surprisingly, you may find some new opportunities that emerge from a troubled situation. In times like this, the daring and creative entrepreneurs earn extra points. Don't be afraid to change your plans, and more specifically, don't be afraid to be more bold and to aggressively pursue new opportunities.

3. Put your leadership skills to work.

If you have what it takes, this is the perfect time to show it. These are the days to show leadership and vision. It’s also the time to recharge your team, guide them and help them focus. Remind them of the long-term goals, rather than getting caught up in the noise and uncertainty.

Leadership is always important, but in quiet times, it's easier to be successful. In times like this, a true leader can shift the troops to becoming real? industry leaders.

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4. Be extra careful with expenses.

Look again at your hiring plans. Push back on hiring for any positions that are not critical. The same goes for other expenses; anything that does not contribute to the primary effort,? should be postponed at least for a few weeks. Hopefully, by then you will be a bit more knowledgeable about the situation.

If your current company longevity is short (six months or less), you may want to consider more drastic measures. Consult with your investors to make sure you are doing the right thing.

A final note on expenses — even in the aftermath of a crisis, investors tend to be focused on efficiency KPIs. Being more efficient will help you even if you end up taking new money earlier.

5. Communicate more often with your investors and employees.

In tough days, everyone is more anxious. Your investors and your employees understand that the company is dealing with a special situation and they should know you understand the issues and are handling them in a smart, calculated way. You cannot make their fears go away, but you can make them feel better, knowing that the wheel is in good hands. Make sure to talk more often with them, even if you can’t provide specific updates.

6. If you are in an active funding round, ignore small details and close it now.

We have all been there; The deal is 90% done and yet the lawyers find plenty of stuff to argue about. This is the time to get involved. Stay focused on the big picture and close the deal.

I have been involved in investment deals on both sides of the fence (as an entrepreneur and investor) for many years. I can tell you that, in most cases, minor details are not relevant. Closing a solid funding deal in challenging times is a huge boost for any company, extending beyond just financial aspects. Focus on that.

7. It's time to remember your vision

Moments like these are the right time to go back and revisit your vision, and the core beliefs that shape both you and your company. Reflect on what is important to you and consider the priorities of your loved ones.

If you still feel strongly about your vision, now is the time to execute. Now is the time to establish a lead over? your competitors. History repeatedly shows that great companies emerge in tough times. This is when it’s easy to show the gap between the men and the boys, and the women and the girls. If you are skeptical, just ask the founders of Airbnb, Github, Slack, and Pinterest, all of whom started their companies during the financial crisis of 2008. As smart people say: “` vbn.”

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This content was previously published in March 2020 and appears? with some edits and updates.