How To Succeed As a Startup in a Slow Economy

Contributors' opinions are their own.

It's easy to get carried away if you find yourself at an opulent ball, wearing crystal shoes and chandeliers.

As soon as the clock strikes midnight, the shiny newTesla that brought you to the castle will turn into a pumpkin in another step towards the brand's goal of being sustainable.

This is happening on the startup scene right now. The year was a great one for founders, as they produced more unicorn companies than the previous five years. The startup valuations are down as venture capitalists are more conservative in their offerings.

We are all aware of what has happened. The stock market has plummeted over the past six months. The world is following in the footsteps of the U.S., with inflation rising. Strained supply lines, the wheat and gas price hikes, and many other pressures weigh down on the global economy. The investors have to make changes.

The right type of investors can be attracted to startups.

There is a new wind blowing. Tech giants are having a hard time with their equity investment efforts. Small and large companies are laying off employees. They are told to be cautious with their war chests as they may be harder to refill down the line.

How should the startup change?

Weathering the storm

The tech scene seems to be adjusting its attitude. Entrepreneurs and pundits don't want to bet on the hyper-scaling strategy. Growth for the sake of change won't cut it and it's time to focus on sustainable business models from the beginning.

It's difficult to disagree with such assessments. We lived for too long in a time when companies were raising so much money that they didn't turn in a profit. You are just postponing the inevitable if you keep raising money. Money becomes harder to secure when the tide turns.

How to Raise Capital in Uncertain Times is related to coronaviruses and a looming recession.

Companies need to create value for the customer. A product needs to stand on it's own and deliver outcomes that matter. Businesses look for ways to trim expenses when there is a downturn. If you want to hedge against future downturns, build products that are too good to give up.

Ronen Korman is the CEO of Datorios. Ronen said that only great quality products would survive the storm. Increasing the investment on your talent is the first thing that needs to be done to build those. It is important to grow leaner and meaner while streamlining your spending. Companies have to be fast, effective, Agile, and obsessive over their product, clients, and talent.

Turning crisis into an opportunity

The current market conditions leave a lot to be desired, but savvy founders can still use some factors to keep their heads above water. The Great Resignation could give companies an opportunity to expand their talent base. The co- founder of Unboxable shared her thoughts on the current hiring market.

When a crisis rears its head, hiring doesn't stop. Middle-market companies are more resilient in uncertain times according to experience from previous crises. They continue to hire. They take advantage of the chance to hire the talent they can't normally afford.

Despite the downturn, companies need to tap into the pool of laid off talent. They need to know what qualities they are looking for and do more to find undiscovered leaders among the existing staff.

The economy's current state isn't as important to some founders as the bigger picture. The market will fluctuate. Some of the most fundamental, industry-shaping trends may expand into the future. Racheli said that now is the time to beambitious.

Racheli said that the inclination is to slash R&D, cut spending, and curtail expansion plans. We are doubling down on R&D and marketing in order to accelerate our growth plans with our partners. We've got our eye on the long game, and the mega-trends of health and wellbeing aren't going away.

The commitment to playing the long game is admirable, as investors want to see a vision, not just a product. Prospective founders should know that the market will always change. When bears take over, innovation can continue. Innovative products built to deliver real value will always win the favor of investors even though they will not be as generous.

There are lessons for the young startup leader.

• The funeral director might bury 10 people a day, but he still finds time to write beautiful songs.

• Job applicants have made a plea to be rejected.

• The fashion founder is using artificial intelligence to eliminate the industry's massive waste and size problems.

• It doesn't make you a bad leader if you are an irrvert. It might be your secret weapon.

• Entrepreneurs can learn a lot from Paul Newman.

• I built over ten million followers on TikTok. This is how you can do it.

• The power move will give you control in any situation, and help you get what you want.