First Round's Guide to Navigating the Crisis
If you haven’t already read a dozen “how to navigate the crisis” articles, this one is really good. First Round pulled together all of the advice they’ve been sharing with entrepreneurs along with links to resources.
Here are some of my takeaways:
- The average time from peak to trough in a recession is 12 months. Not to recovery - just until the bottom
- Doing nothing is a decision. If you do nothing, you’re saying that things haven’t changed for you
- Use a runway matrix as a scenario planning framework to think through things you can and can’t control
- “Especially in a downturn, people want to give money to companies that don’t need the money.” Build a plan to reach cash flow positive
- Imagine it’s 18 months from now, and you’re out of cash. What are the top five things you wish you hadn’t spent money on?
- “Do everything you can to be fact-based in your decision making, but bring every bit of EQ you can to your leadership and execute with compassion”
- Going through hard stuff brings people together. Take care of your team and don’t forget to celebrate them
- Look for bright spots and reframe your mindset. What are the unexpected opportunities that have come out of this chaos already?