The Founder s Field Guide for Navigating a Crisis Advice from Recession-Era Leaders Investors and

The Founder's Field Guide for Navigating a Crisis — Advice from Recession-Era Leaders, Investors and CEOs Currently at the Helm

In this economic crisis, we used the early partner, founder, and CEO community in order to summarize the most comprehensive guides for what to lead an emerging company. The guide is working on the following tasks, from the expansion of the runway and the suppression of funding to the team to the support of the team.

This guide was issued on April 9, 2020.

Organizing a startup is always challenging, even in the best situation. The founder must quickly acquire a huge number of skills, from the construction of great products and the market efforts to the market to the funding, the management of the Board of Directors, the recruitment, culture, and rewards. In addition, entrepreneurship is a lonely effort, and the founders are forced to make a harsh decision every day in incomplete information. As we organize these issues, each founder will eventually hit the problem that we have never seen before and do not know what to do.

In April 2020, we are certainly not working under the best conditions. The future is unclear, the dynamic "founder's face" has been expanded many times, and it is progressing simultaneously at a warp speed. Whatever tactics and strategies are valid in January, it may not be so effective now.

Such a situation that is becoming more and more striking is the ultimate trial to test the leader's resilience. In our experience, the best safety net is the wisdom of the community and the experience of a fellow business leader. Content on how COVID-19 has an impact on emerging companies is now in the world. However, in explosive writing about pandemic, Twitter threads, newsletters on drug abuse, and advice that are scattered in posts of mi d-sized companies, the label deeply deeply digging the leadership and the detailed "ho w-to" of planning in this crisis. It turns out that there is almost no yet.

In the last few weeks, we have answered various questions received from early founders:

If there is COVID-19, how should we work on the plan?
What kind of signal should be watched before the alternative expenditure plan triggers?
How is the financing bar different from now on 18 to 24 months?
Is there an option to replace riffs while suppressing burning?
How do you market for the last few years?

For the answer, of course, we have our own views. Since its founding in 2004, the first round team has applied a lon g-term view of lenses through all the twists and turns in the market. Partner Josh Coperman and Bill Trentent Chard established a company in the early 2000s, and went to investment and advisory side in 2008, and recovered from the Great recession, and companies such as Square and Uber were missing. We supported stable sea voyage. We are convinced that the best advice for the establishment of the company is not necessarily obtained by venture capitalists. In more cases, it comes from a colleague and experts.

Therefore, we used crowdsourcing for this guide to sort out the lessons we met. Some of the tips shared here are from the First Round team, from the founder who built the Bend earlier, and some of the resources we were curated. We conducted our own interviews, excerpted from the firs t-round community guide, which had never been published in the past, and investigated how the founders intend to survive the storm. As usual, we will take up what we think is important, what is overlooked, and those that are not evaluated.

We don't have a perfect answer or a complete playbook here, as we are still in the early stages. However, you can share your initial ideas, talk about the issues facing everyone, and utilize the beneficial advice flowing through your private channel, and continue to change the local situation. We hope that it will help you develop the countermeasures and add improvements.

We are grateful to the leaders of emerging companies for spending time and generously sharing their harsh wisdom. In particular, for leaders who have launched their business in the dot com era and the great recession. We live in an unprecedented era, each road is unique, but some lessons are useful many times. The answer is, of course, our opinion. Since its founding in 2004, the first round team has applied a lon g-term view of lenses through all the twists and turns in the market. Partner Josh Coperman and Bill Trentent Chard established a company in the early 2000s, and went to investment and advisory side in 2008, and recovered from the Great recession, and companies such as Square and Uber were missing. We supported stable sea voyage. We are convinced that the best advice for the establishment of the company is not necessarily obtained by venture capitalists. In more cases, it comes from a colleague and experts.

We are grateful to the leaders of emerging companies for spending time and generously sharing their harsh wisdom. In particular, for leaders who have launched their business in the dot com era and the great recession. We live in an unprecedented era, each road is unique, but some lessons are useful many times. For the answer, of course, we have our own views. Since its founding in 2004, the first round team has applied a lon g-term view of lenses through all the twists and turns in the market. Partner Josh Coperman and Bill Trentent Chard established a company in the early 2000s, and went to investment and advisory side in 2008, and recovered from the Great recession, and companies such as Square and Uber were missing. We supported stable sea voyage. We are convinced that the best advice for the establishment of the company is not necessarily obtained by venture capitalists. In more cases, it comes from a colleague and experts.

PART 1: MAKING SENSE OF MACRO CONDITIONS AND MARKET SIGNALS

1. Brush up on your history as you make your bet.

2. Watch out for false bottoms.

In this guide, we intentionally tried to capture a wide range of perspectives, so you can hear a variety of voices. Today's founders, downturn leaders, and full-time investors don't always see eye to eye. It's more important than ever to get different perspectives while seeking the best advice for your company. From Zoom and Instacart to StubHub and OpenTable (and the startups that fall in between those extremes), it's clear that there is no one-size-fits-all answer to running a company these days.

We've broken this guide into eight parts, outlined below. Warning: While we've always loved long stories, today's effort is so long that it's probably not something you'd read over your morning coffee. Instead, we envision this as a resource for bookmarking.

3. Look out for the locomotive effect.

You should also take a look at the resources node we've collected in Concepts. This node brings together the recommended books mentioned below, a brand new script planning template, and a list of curated job search sources (for both candidates actively looking for work and companies that are hiring).

Let's look at the broader environment founders are in and why they need to take a more conservative stance.

"Founders in the early 1930s may have gone to college during the Great Depression, so my first impulse is to get founders to recognize that they're operating in a different environment than they're used to," says Josh Kopelman, founding partner at First Round. "It could be a quick recovery, but I think it's important to assess the likelihood of that happening. If you look at the history of the longest recessions in the last 50 years, the average length is about 12 months. And that's not about recovery, it's about hitting the bottom. There's a chance of a quick recovery, but there's also a chance of a long recession or depression. I want you to assess what you're betting on and recognize that."

First-round colleague Bill Trenchard agrees: "When budgets start to shrink and people start maximizing profits over growth, it becomes incredibly hard to sell products. There are a lot of feedback loops in the destruction of small businesses, which destroys a huge percentage of jobs in the country, which in turn destroys consumer spending, which can drive the entire economy. More specifically, almost 50% of jobs in this country come from small businesses. Consumer spending is the engine of the economy, and rising unemployment can lead to a big drop in consumer spending."

"I founded Half. com in 1999, and we ended up owning and signing our own sheets as the market crashed. Then in 2008, I raised my first round, and it's been a few years since I started investing full-time," says Josh Kopelman. "I've seen in every recession that I've been through, people are initially tempted to underestimate the severity of the recession. There were a lot of false bottoms in the dot-com era and in 2008. But stocks go down and stabilize, so people say, 'Phew, OK, we're good now,' and then 90 days later they're down another +10%. So at the beginning, it's hard to know the magnitude of what you're dealing with. The human mind is too big, and we only pick up what we want to hear, and the rest gets drowned out like noise. " "The key difference here is that we're fighting a pandemic. "In 2008, we were wondering when the banks were going to fail. Now, everyone's asking, 'Will the health care system fail?' And whereas before the antidote was government stimulus, now we're hoping for a literal antidote in the form of a vaccine or an antiviral.

Many of the emerging companies on the seeds and early stages may believe that the turmoil in the stock market does not affect the business so strongly that the possibility of the IPO is many years ahead. "Even if the stock market falls by 20 %, it may not directly affect the evaluation of emerging companies, but there is a locomotive effect. If the public market is affected, these changes collapse slowly and ((). Trenchds will be shifted to loc k-ups in the second half and sometimes deployed in different directions. " "Specifically, if the evaluation of public companies penetrates through the ceiling, the price of Series A and Series B will fall. If lat e-out and listed companies are fierce, seed emerging companies are follo w-through. When considering the ability to procure a round, it is necessary to take this into account.

In other words, it is the on e-sided one. It is important to take over this lesson to other fields of business. Many emerging companies in the harsh industry are now struggling, but the recycling results with customers may also be easily denied.

"Early stage founders may not have noticed the hit yet," says Trent Chard. "They think like this. You can continue to sell it to your customers without a major premise that things will recover. In the future, things will change quickly."

In order to show the speed of changes in ground wars, we have begun new initiatives (inspired by the State of Startups report). In just two weeks, the percentage of respondents who answered that they had been affected by pandemic had increased from 55 % to 64 %.
"No one knows when the recession begins, and when it will be so serious, but in Brace for Impact, this situation has a wide and severe impact on customers instead of waiting for it. Says Mark Bartels, the current CFO of Invoice2go and former CFO of Stumbleupon. Many of the seeds and early stages of emerging companies may believe that the turmoil in the stock market does not affect the business so strongly because the possibility of the IPO is many years ahead. "Even if the stock market falls by 20 %, it may not directly affect the evaluation of emerging companies, but there is a locomotive effect. If the public market is affected, these changes collapse slowly and ((). Trenchds will be shifted to loc k-ups in the second half and sometimes deployed in different directions. " "Specifically, if the evaluation of public companies penetrates through the ceiling, the price of Series A and Series B will fall. If lat e-out and listed companies are fierce, seed emerging companies are follo w-through. When considering the ability to procure a round, it is necessary to take this into account.
In other words, it is the on e-sided one. It is important to take over this lesson to other fields of business. Many emerging companies in the harsh industry are now struggling, but the recycling results with customers may also be easily denied.
"Early stage founders may not have noticed the hit yet," says Trent Chard. "They think like this. You can continue to sell it to your customers without a major premise that things will recover. In the future, things will change quickly."
In order to show the speed of changes in ground wars, we have begun new initiatives (inspired by the State of Startups report). In just two weeks, the percentage of respondents who answered that they had been affected by pandemic had increased from 55 % to 64 %.

PART 2: THE CASE FOR RESPONDING QUICKLY AND THINKING THROUGH SCENARIOS

"No one knows when the recession begins, and when it will be so serious, but in Brace for Impact, this situation has a wide and severe impact on customers instead of waiting for it. Says Mark Bartels, the current CFO of Invoice2go and former CFO of Stumbleupon. Many of the emerging companies on the seeds and early stages may believe that the turmoil in the stock market does not affect the business so strongly that the possibility of the IPO is many years ahead. "Even if the stock market falls by 20 %, it may not directly affect the evaluation of emerging companies, but there is a locomotive effect. If the public market is affected, these changes collapse slowly and ((). Trenchds will be shifted to loc k-ups in the second half and sometimes deployed in different directions. " "Specifically, if the evaluation of public companies penetrates through the ceiling, the price of Series A and Series B will fall. If lat e-out and listed companies are fierce, seed emerging companies are follo w-through. When considering the ability to procure a round, it is necessary to take this into account.

1. Account for the widening aperture.

In order to show the speed of changes in ground wars, we have begun new initiatives (inspired by the State of Startups report). In just two weeks, the percentage of respondents who answered that they had been affected by pandemic had increased from 55 % to 64 %.

Alex Lampel, the current General partner (former CEO and c o-founder of Trick Speims) of Andrisesen Hollowitz, made appropriate indicates about invisible effects: "Many companies are ant i-business. I believe that it is a recycling, but I don't think there is any counterclockwise.
"For example, TRIXPAY was the number one customer acquisition of Washington Mutual New checking in 2008. Did you not know Washington Mutual Bank? Because we have overwhelmed debt. We are the best. It was a channel, but the macro environment killed them.
Additional resources in macro environment:
Analyzing the traffic pattern of FourSquare: The impact of COVID-19 on real world behavior

2. Beware of the dangers of delay and doing nothing.

The JP Morgan Chase Cash Institute's King Report was investigating the financial life of 600. 000 small and mediu m-sized businesses in 2016.

Womply Slide Deck: 2020 Financial Information Disclosure: Impact on SMEs in the United States

London Business School Lecture Pandemic Economics: COVID-19 case

Fortune-telling newsletter: Understand the recession of COVID-19-What happens when the economy takes a breathtaking?

How should the founder respond based on such a wide range of situations? There are a variety of ways to take into account, from taking action to reduce conservative reductions to a more cautious "appearance" approach. Here's the general consensus we found. The "normal" response that does not change the plan before funding is probably not the right approach. Therefore, the importance of scenario planning emerges.

3. Pick up the tempo.

The founder tends to be optimistic, so it is important to check your bias through this process and try to think. Accept various possibilities and set up a few plans for various results will not be released later. Some of those who gave us advice have divided opinions on how much we need to change plans and how aggressively we should change. Alex Lampel, the current General Partner (former CEO and c o-founder of Trick Speims) of Andrisen Hollowitz, made appropriate indications for invisible effects: "Many companies are their own. I believe that the business is ant i-cyclic, but I don't think there is any counterclockwise.

"For example, TRIXPAY was the number one customer acquisition of Washington Mutual New checking in 2008. Did you not know Washington Mutual Bank? Because we have overwhelmed debt. We are the best. It was a channel, but the macro environment killed them.

Additional resources in macro environment:

PART 3: THE NUTS & BOLTS OF SCENARIO PLANNING —OUR 5-STEP FRAMEWORK AND TEMPLATE

Analyzing the traffic pattern of FourSquare: The impact of COVID-19 on real world behavior

The JP Morgan Chase Cash Institute's King Report was investigating the financial life of 600. 000 small and mediu m-sized businesses in 2016.

Why you need a scenario planning framework:

Womply Slide Deck: 2020 Financial Information Disclosure: Impact on SMEs in the United States

London Business School Lecture Pandemic Economics: COVID-19 case

Fortune-telling newsletter: Understand the recession of COVID-19-What happens when the economy takes a breathtaking?

The founder tends to be optimistic, so it is important to check your bias through this process and try to think. Accept various possibilities and set up a few plans for various results will not be released later. Some of those who gave us advice have divided opinions on how much we need to change plans and how aggressively we should change. Alex Lampel, the current General partner (former CEO and c o-founder of Trick Speims) of Andrisesen Hollowitz, made appropriate indicates about invisible effects: "Many companies are ant i-business. I believe that it is a recycling, but it is sometimes difficult to predict.

Step 1: Identify your key uncertainties.

Additional resources in macro environment:

Step 2: Bucket them into scenarios.

Analyzing the traffic pattern of FourSquare: The impact of COVID-19 on real world behavior

The JP Morgan Chase Cash Institute's King Report was investigating the financial life of 600. 000 small and mediu m-sized businesses in 2016.

Womply Slide Deck: 2020 Financial Information Disclosure: Impact on SMEs in the United States
London Business School Lecture Pandemic Economics: COVID-19 case
Fortune-telling newsletter: Understand the recession of COVID-19-What happens when the economy takes a breathtaking?

Step 3: Craft responses to each.

CEOs have a mission to make decisions about the future based on the current available information. In other words, betting on how to allocate management resources. "The job of the founder is always predicting the future, and creating a company is to predict how the world will change," says Josh Coperman of the first round.

Step 4: Look for triggers points.

Normally, the founder gives such a bet, evaluating the capital market, customer demand, competition, distribution, and sales speed, and evaluates the gaps of the potential future decisio n-making. Normally, the more time it is, the more data you get, the smaller the decision making buffer, and the accuracy of decision making. However, in the situation of Black One, the buffer is larger than ever. "The difference is very large. Sometimes it recovers in 90 days, it can return to normal after six months, and may be in a global recession." He says.

Here, we briefly explain the outline of these potential scenarios based on the alphabet, probably mentioned in the past.
V-shaped recovery: After a sharp pleasure, it recovers rapidly as the economy recovers. This is an example where the US economy in 1953 is often referred to.

U-shaped recovery: In contrast to the cavity with a sharp bottom, draw a curve that is not very clear. (IMF's former Chief Economist has compared it to a bathtub). Growth is recovering, but it takes longer than planning. Let's consider the recession in the United States between 1973 and 1975.

Step 5: Revisit, revise and repeat.

L-shaped recovery: Serious recession or depression may decrease the growth rate after recovery. Japan's "Lost 10 Years" in the 1990s show this pattern.

As the Bloomberg article has pointed out, the economist believes that there are other patterns.

"If the actions to take are painful, such as austerity, a cognitive bias that procrastinates it until you can be convinced that you need it, is in short, the possibility that the worst result may be. In a rising situation, it may be too late when you are convinced of the need for action, "says Coperman. "In this case, the risk of disasters increases over time, and the day when the combustion rate does not lower is narrowed every day, the chance to survive when the worst situation occurs."

In general, people prefer to postpone painful choices, over optimistic about the possibility of funding, and wait until they are convinced that these choices are needed.

"A lot of times, when founders choose to do nothing, they think they haven't made a decision yet. But they are. This is the inaction bias at work. Changing things seems like a decision, staying the way they are isn't. But both are decisions and should be seen that way, because if you don't do anything, you're essentially saying that things haven't changed for you. That may be true for some companies, like an early-stage startup that was going to spend the next year writing code, but most startups will see some change," he says. "I've been through financial contractions in the past. The companies and founders that really understood the range of possible outcomes and made scenario plans for the worst-case scenarios (hoping that the worst-case scenarios wouldn't happen) survived. Those that waited long enough suffered."

Doing nothing is a decision. It's the same as actively choosing to stay on the same path. And most founders don't realize it. When the winds shift, the wise sailor adjusts his sails.

Gina Bianchini agrees. (She is the current CEO and founder of Mighty Networks, and was CEO of Ning, which she co-founded with Marc Andreessen, from 2004 to 2010.) "Many founders I've spoken to recently say variations of, 'We can wait a few weeks,' or, 'We just want to get moving.' If we could show more empathy in the outbound sales sequence, things would turn around." The odds may be slim that this applies to everyone, he says. "I understand the temptation to create the impression that everything is fine. People are scared, things are uncertain, and there's a lag because we're still remembering what 'normal' was three weeks ago. But if you wait too long to act, no amount of optimism or tactical change will save you. It could be like "rearranging the deck chairs on the Titanic." The speed of your decision-making is always important. Combine a rapidly changing environment with a tendency to kick the can down the road and become overly optimistic, and it's no surprise that a "wait and see" attitude isn't the best approach.
"Repeat the plan right away. Not 15 minutes or a few weeks later. Simon Karaf of the current Twilio messaging SVP and GM (at the time of 2008, he was the president and CEO of Flurry Analytics). In other words, it may be difficult to move from a quarterly plan to a weekly plan. The changes in the business, but the changes in the microcompermal level, such as contracting and cancellation, are still slow, "said Josh Coperman, the first round.
This is why this is particularly difficult for the founder: "Most CEOs are not good at thinking about macros. They are focusing on the focus of micro, company, employees, and customers. Bill Trent Chard says, "But the excellent founder will reset it right away, but the excellent founder will reset it immediately. What should I do?
But how do you specifically to prepare for a definitive response to changes in the situation? At least it is important to understand your cash position and step on a stepping picture. If you borrow the words of Sequoia's friend, we recommend that you start with a simple whiteboard. We have advised to secure at least 24 months of treadmills (green cells), and posting tips for that guide.
If you have already finished this work and want to deepen further, the following is an overview of the fiv e-stage framework recommended for more advanced scenario planning.

PART 4: BROADER THOUGHTS ON EXTENDING YOUR RUNWAY

"Your work as a leader is to imagine how your company should change. What are the various future scenarios for the country, for the economy, and your company? How does the company survive and prosper? " "The basics are to turn your observation and assumptions into a potential scenario and overview how the current bumped business plan is adapted to respond to that scenario."

The advice we’re sharing with First Round companies on runway:

It's best to plan for the best chance of survival under a variety of recovery scenarios. Plan for the worst, but also plan for the best.

He emphasizes that this scenario planning exercise is about thinking through options. "It's scary when founders have a knee-jerk reaction and just cut 40%. That might be the right answer. Or it might be 10%. Or it might not be the right move at all. First, understand the implications of the various scenarios that could happen," Kopelman says. "A good plan says: Wait 30 days, if this happens, do X, and if this happens, do Y."

The early partners kept coming back to this principle as they held multiple working sessions with all the founders. But we wanted to go beyond the high-license, one-on-one approach and dig deeper, and share these resources.

If you're interested in how this approach works in practice, our friends at Concept have created this scenario response plan template. Duplicate our template and start planning for your company.

To begin this process, identify 6-10 key uncertainties for the coming year introduced by COVID-19 and reflect them in your plan.

Will the public health response be able to effectively and quickly contain the spread of the virus? Will economic policy interventions prevent widespread small business closures? Will anti-discrimination policies have a lasting impact on customer purchasing behavior? Your list will be different. Focus on those that you believe will have the greatest impact on your company's outlook and strategy, and try to include a range from macroeconomic and epidemiological uncertainties to those that affect markets, customers, and other stakeholders.

Advice from recession-era founders on runway:

Combine the results of your list of uncertainties to create three (or more) scenarios. Think carefully about how to frame each scenario so that each scenario contains a plausible combination of outcomes and captures a useful business case. This can be based on the potential monetary payback amounts in the letter format described earlier. Patrick O'Shaughnessy offers another useful metaphor based on the trio of "Blizzard," "Winter," and "Ice Age."

In order to bring life into the script, we recommend that you add a name and story to each script to make it not abstract but to the specific situation of your company. I chose the following for the catering services for fantastic corporations:
Returning (worst case): Employees have not returned to the office completely until 2021, the closure of restaurants has expanded, and the demand for corporate catering declines.
Soft Recovery (Intermediate Case): Workers have not returned to the office completely until the fall of 2020, and the closing of restaurants is widely reduced, and the demand for catering for corporate catering decreases.
Old Normal (Best Case): Workers have returned to the office by the summer of 2020, prevent larg e-scale restaurants from being closed, and the demand for corporate catering is hardly affected.
See the concept template for detailed assumptions for creating these wonderful scenarios.
If your scenario is drawing at the end of the world, your answer is to answer the question, "What is this time?" Whatever the future is, one clear thing is that companies that act quickly will be advantageous.

Let's realize this by creating specific decisio n-making and answers that can promote actions at a more detailed level. Think about how your overall business game plan changes depending on the scenario using the table below. Disassemble the steps you take from the perspective of profit goals, product direction, number of runways, and the resulting combustion rate.

We believe that General Dwight Eisenhower is not the actual plan itself, but the process of the plan. Nevertheless, we will keep a specific internal and macr o-like triggers, and when we determine the path to take, we will make these scenarios more useful (no abstract). I feel it. The following is a sample of the indicator to be considered:
Macro: Expansion and change of shelter policy, unemployment trends, small and mediu m-sized enterprises, etc.
Inside: stable or falling, recovery (or drought) (or drought) of inbound sales (or drought).
By adding a specific trigger point to each, you can increase the scenario answer. (For example, the closing of the restaurant has reached an estimate, employment has begun to stabilize, the receipt for inbound sales leads has fallen below the best case scenario or "Normally Return").

PART 5: HOW TO REDUCE BURN — STRATEGIES FOR CUTTING COSTS

Every 2-4 weeks, archive your old uncertainties, scripts, and answers, and copy-paste your builder templates into a new version. Use this rewrite as an opportunity to reflect on what has changed, whether your scenario is still realistic, and change your course of action accordingly.

1. Cut expenses:

Try to bring down the burden of rent.

"If today is April 9th, create version 1. 0 today, create version 1. 1 on May 9th, then create 1. 2 in June, and so on," recommends Josh Kopelman of Round 1.

Once you settle on a model, there's a danger that it becomes entrenched. Make sure that a list of things that seem to be true in the world and signals that tell you that a V-shaped, U-shaped, or L-shaped recovery is happening emerges from that planning process," he says. Write these out and be careful to look for these signs. Don't get trapped by your initial assumptions. That way, you'll be more flexible and agile when the world starts sending signals.
Writing your case into a living document forces you to recognize what's changing.

Clean up by running through this thought experiment.

Bill Trenchard of First Round agrees: "One founder I work with is planning for a mid-scenario recession, but hedging his bets. He has a round in the bank so he has an extra seller in case he misses and things bounce back quickly. This founder is updating his board almost weekly on what he's seeing, what he's doing, and how he's changing his plan now that he has 3-4 weeks of data."

Additional Resources for Scenario Planning

Tactics for cutting expenses, recommended by current CEOs in the First Round community:

Dan Hockenmeyer's post on how to scenario plan for Covid-19

Sequoia's Matrix Template for Covid-19
HBR 2009 article: The Advantage of Leverage in a Recession
Boston Consulting Group's article on the dynamics and implications of Covid-19 Slides from Howard Marks: A note to Oaktree clients Now that we have the scenario in place, if the design results in the need to find a way to expand the corridor, here are some approaches to consider. First, we'll give you a general idea and a few different perspectives on the most important things to prioritize. Then we'll dig into the specifics of cost reduction (stopping hiring, cutting expenses, reducing staff) and capital increase (raising funds from customers, raising capital, borrowing from venture capitalists).
You can think cash is insurance. I hope it is insurance for unexpected events and no need to use it. In other words, I hope the house will not burn, but it's like taking out fire insurance in case. Similarly, there is no doubt that the economic recovery is earlier than expected, with a lot of cash at hand. Don't be afraid to use too much, hoping that you don't need extra money. The higher the uncertainty, the more insurance you want.
If you can, secure a + 24 month funding period. If you have more recently, secure 36 months of funds and make them more flexible.

2. Take a serious look at headcount:

One of the main tasks of CEO is to manage the crisis of survival. And the most survival crisis is the lack of capital.

If you think about treadmills from this point of view, more conservative predictions may be required. There is an unknown world ahead. For example, a specific lever that has been effectively turned over, such as a specific sales method is no longer functioning, may be found. What is another reason for taking safety measures here? The en d-t o-end process of financing is becoming more difficult, and as a result, it is becoming more difficult.

Start by pausing hiring.

More fundamentally, it is necessary to redefine all the assumptions. "When raising funds as a founder, the funds have a job, said Round One of Josh Coperman.

"I want to ask all the founders who work together. You assume that you bet on the time frame and execution amount for trading, but now 2020 is lost. What will happen if you are planning to sell, develop, and grow? Is there enough runway to do the job?

Consider reducing comp.

Here, we briefly introduce hints from some founders who felt the pain of the runway of the shortcut in the past recession: Cash is insurance. I hope it is insurance for unexpected events and no need to use it. In other words, I hope the house will not burn, but it's like taking out fire insurance in case. Similarly, there is no doubt that the economic recovery is earlier than expected, with a lot of cash at hand. Don't be afraid to use too much, hoping that you don't need extra money. The higher the uncertainty, the more insurance you want.

If you can, secure a + 24 month funding period. If you have more recently, secure 36 months of funds and make them more flexible.

One of the main tasks of CEO is to manage the crisis of survival. And the most survival crisis is the lack of capital.

Think carefully about a reduction in force.

More fundamentally, it is necessary to redefine all the assumptions. "When raising funds as a founder, the funds have a job, said Round One of Josh Coperman.

Here, we briefly introduce hints from some founders who felt the pain of the runway of the shortcut in the past recession: cash is insurance. I hope it is insurance for unexpected events and no need to use it. In other words, I hope the house will not burn, but it's like taking out fire insurance in case. Similarly, there is no doubt that the economic recovery is earlier than expected, with a lot of cash at hand. Don't be afraid to use too much, hoping that you don't need extra money. The higher the uncertainty, the more insurance you want.

What other founders are currently thinking on layoffs:

If you can, secure a + 24 month funding period. If you have more recently, secure 36 months of funds and make them more flexible.

Advice from recession-era founders on layoffs:

One of the main tasks of CEO is to manage the crisis of survival. And the most survival crisis is the lack of capital.
If you think about treadmills from this point of view, more conservative predictions may be required. There is an unknown world ahead. For example, a specific lever that has been effectively turned over, such as a specific sales method is no longer functioning, may be found. What is another reason for taking safety measures here? The en d-t o-end process of financing is becoming more difficult, and as a result, it is becoming more difficult.
More fundamentally, it is necessary to redefine all the assumptions. "When raising funds as a founder, the funds have a job, said Round One of Josh Coperman.
"I want to ask all the founders who work together. You assume that you bet on the time frame and execution amount for trading, but now 2020 is lost. What will happen if you are planning to sell, develop, and grow? Is there enough runway to do the job?
Here, we will briefly introduce hints from some founders who felt the pain of the shortcut runway due to the past recession:

Additional resources on layoffs:

Get cash early and keep it. "Alex Lampel (the current GP of A16Z, former CEO of Trickspay / c o-founder)) says," The $ one is much more valuable than the $ one in two years. Survive. Survive. It would have been very difficult if I had to make a round for all three years.
Get capital without need, "The other day I met some founders and asked about the scenario where cash flow became a plus. It wasn't there. It's important to control your fate yourself. Gina Biancini (Mighty Networks and Ning) says. Who can collect the most funds? These are the people who have already the cash flow in the black or have a way to the surplus. Look at the concept that raised $ 50 million last week. In particular, during the recession, people want to provide funds to companies that do not need money. "
Not only use it today, but also think about the impact of the future. "Even if the recovery is early, please take a look that you think it is necessary anyway. Ken Goldman, a former Fortnet CFO, said," Using this opportunity, the company is strong overall. Take action to do. " Seth Sturnberg, who established MeeBo in 2008, also gave the same advice: "Make the bend durable. Think of it as a unique thing to do now.
Don't remove anything from the table Sturnberg's words: "In such a case, you can literally review all the premise. It is probably not enough to redeem the price. 。 Get cash early and sustain it. "Alex Lampel (the current GP of A16Z, former CEO of Trickspay / c o-founder)) says," The $ one is much more valuable than the $ one in two years. Survive. Survive. It would have been very difficult if I had to make a round for all three years.
Get capital without need, "The other day I met some founders and asked about the scenario where cash flow became a plus. It wasn't there. It's important to control your fate yourself. Gina Biancini (Mighty Networks and Ning) says. Who can collect the most funds? These are the people who have already the cash flow in the black or have a way to the surplus. Look at the concept that raised $ 50 million last week. In particular, during the recession, people want to provide funds to companies that do not need money. "
Not only use it today, but also think about the impact of the future. "Even if the recovery is early, please take a look that you think it is necessary anyway. Ken Goldman, a former Fortnet CFO, said," Using this opportunity, the company is strong overall. Take action to do. " Seth Sturnberg, who established MeeBo in 2008, also gave the same advice: "Make the bend durable. Think of it as a unique thing to do now.

PART 6: HOW TO BRING IN MORE CAPITAL — TIPS FOR PUTTING MORE FUEL IN THE TANK

Don't remove anything from the table Sturnberg's words: "In such a case, you can literally review all the premise. It is probably not enough to redeem the price. 。 Get cash early and keep it. "Alex Lampel (the current GP of A16Z, former CEO of Trickspay / c o-founder)) says," The $ one is much more valuable than the $ one in two years. Survive. Survive. It would have been very difficult if I had to make a round for all three years.

1. Bringing in more revenue from customers:

The advice we’re sharing with First Round companies:

Get capital without need, "The other day I met some founders and asked about the scenario where cash flow became a plus. It wasn't there. It's important to control your fate yourself. Gina Biancini (Mighty Networks and Ning) says. Who can collect the most funds? These are the people who have already the cash flow in the black or have a way to the surplus. Look at the concept that raised $ 50 million last week. In particular, during the recession, people want to provide funds to companies that do not need money. "

Not only use it today, but also think about the impact of the future. "Even if the recovery is early, please take a look that you think it is necessary anyway. Ken Goldman, a former Fortnet CFO, said," Using this opportunity, the company is strong overall. Take action to do. " Seth Sturnberg, who established MeeBo in 2008, also gave the same advice: "Make the bend durable. Think of it as a unique thing to do now.

Don't remove anything from the table Sturnberg's words: "In such a case, you can literally review all the premise. It is probably not enough to redeem the price. 。

Don't forget that feeling. "When I became a CEO of Alltrails in 2015, the company had only a minimum revenue and recorded a si x-digit burn rate every month," said Jade Van Doren. Instead of focusing on financing, we have improved the quality of the product, the relevant riding data, and optimize sales of sales. In less than six months, the business turned into a positive business, growing organically without additional capital, and in 2018 we were able to sell more than $ 75 million private equity-only employees. With 14 people. Perhaps because the financial discipline was lost in the event of 2008, or even in the economic environment where others look at the growth of dolla r-based, I manage and invest a more developed produc t-based growth company. I came to like it. "

Advice from recession-era founders on revenue:

Extend the runway-but make sure that you are connected somewhere, "I support reasonable budget reductions. Saving cash is great. It should be the above, "said Oren Michels, a CEO and c o-founder of Mashali (later acquired by Intel and later acquired by Tibco) during the Great Recession. "If you reduce your budget significantly now, you may be able to avoid a few months deficit, but for what? It is time to recover the product development and the release of the product while thinking about the scenario.
Additional resources of aisle
Reconfirm the aviation base table for navigation uncertainty: Expanding the runway

The first round review article How did this founder change the slow combustion speed into a large output?

Revenue tactics recommended by current CEOs in First Round community:

Oren Hoffman's Post: This is how your startups will not only survive the recession, but to be strong
Twitter thread on profitability by Sahil Lavingia, founder and CEO
If you are doing your best to dramatically reduce the combustion rate, we have compiled two common paths.
In addition to the team's reward, rent is one of the most important items in the budget. First of all, the lawyer should review the contract, but why not consider the following strategies:
Rent reductions: Most landlords have leases that require rent payment in an emergency, even if they contain the force majeure clauses mentioned above. The best way to obtain rent reductions is to negotiate directly with the landlord before the flood of requests. They are often willing to restructure leases to secure short-term relief. Try to negotiate temporary or permanent lease discounts or receive discounts in the form of credits. (For example, offer to continue payments for the next three months in exchange for waiving two months of payments at the end of the lease). In agreements known as mix-and-extend, some landlords agree to free or reduced rent for a period of time, with additional prepaid rent amortized into monthly payments for the remainder of the lease. Often such agreements include lease extensions.
Downsizing: This is especially true for companies that are able to move into modular spaces (WeWork, Knotel, etc.) and consolidate the space they need. Many of us may be working from home for the next 12-18 months, or at least part of the year, in line with continued quarantines. Do we really need that office space? Can we get by with shared or part-time space or a WeWork membership?

"Ken Goldman told me recently that this is a great time to get things in order," says First Partner Bill Trenchard. "Because it's not a time for belt tightening, I think a lot of companies have misjudged a little and piled on expenses that aren't absolutely necessary. Now is the time to clean that up. One startup I know cut 25% of their expenses. That's like getting rid of a bunch of perks that nobody used. That's a good start to making the company weak and spiteful."

Here's a thought experiment for all founders: Imagine 18 months from now. Your company is out of cash. What are the top 5 things you wish you hadn't spent money on? Here are some other tactical ideas from the first round of the community:
Especially on the business side, be very careful with your marketing spend. Ad spend may be cheaper, but you don't know how your funnel will convert in this new environment.
Cancel your credit cards and issue new ones. This will eliminate all recurring charges and the company will explicitly re-subscribe to all critical services. (The downside here is that you may lose critical infrastructure linked to the card.)
Ask your team to look for savings and give them a percentage of everything the company saves as a bonus. You'll be surprised how much you can save by line-expensing every single output. It may seem counterintuitive, but it all adds up.
Reduce the absolute cost of software subscriptions and try to eliminate non-mission-critical locations and licenses.

2. Fundraise

Review services that are on retention devices, such as PR firms.

Once founders move beyond cost-cutting and rent-cutting, the next thing they need to carefully consider is the number of employees. Of course, these are not spreadsheet items. Our only advice is to remember that these decisions will have a huge impact on the people on your team. Consider all your options before you decide to lay off people.

The advice we’re sharing with First Round companies on fundraising:

Before you move forward If you've been personally affected by a layoff, check out the resources we've compiled here. Some of the startups backed by First Round are still hiring. If you are at a company that is still actively hiring and would like to get in touch with new available candidates, we have compiled some helpful resources here as well.

What other founders are thinking right now Many startups are already doing it. In a survey two weeks ago, 35% of founders said they had frozen hiring. As of April 9, that number has risen to 47%.

If you have active hiring plans, you should consider pausing or scaling back, especially in the areas of sales and marketing. Unless you are part of a company that benefits from the current situation, companies and individuals will be less willing to buy. You likely already have all the team you need to complete your cutback plans for this year.

What other founders are thinking right now As of March 24, only 16% of founders said they had taken a pay cut. As of April 9, this has increased to 23%.

Advice from recession-era founders on fundraising:

If not yet, we will consider a reduction in executive salaries as a way to show the team that everyone is feeling pain. In the future, when the balance sheet is enhanced, you may be able to pay that much. It is also possible to consider increasing equivalence while considering reducing cash spending. One of the options is to reduce the 401K matching and the decision at the end of the year.

But one of the CEOs we know is negative to this idea. No matter what you say, people never feel good, and are always trying to return themselves. Don't promise that you never return. It sticks to the opponent's head and makes you tired. "

When Reeff is announced, it will be the most difficult day in any young startup history. It is incredibly difficult to say goodbye to the excellent human resources you handle and hired, the people who helped you to reach the current company. Of course, it is unimaginable for the affected people. It is also important to recognize that the dismissal of team members today in April 2020 has an uncertain future employment outlook, so it is fundamentally different from dismissal in other circumstances. 。

As the first round of Bill Trentchard pointed out, there is also a challenge that this issue will be asked strict questions. "Is my job safe? Will I be fired?" Unfortunately, no one can promise no, or not in any situation, but in any situation, but that message. I don't want to know how to tell. He will tell you as much as possible so that no one is surprised. "It's like a tiger hidden behind you. If you don't have it yet, we will examine the reduction in officers as a way to show the pain to the team. When the balance sheet is enhanced, it may be possible to consider reducing cash spending. Reducing determination is one of the options.

As the first round of Bill Trentchard pointed out, there is also a challenge that this issue will be asked strict questions. "Is my job safe? Will I be fired?" Unfortunately, no one can promise no, or not in any situation, but in any situation, but that message. I don't want to know how to tell. He will tell you as much as possible so that no one is surprised. "It's like a tiger hidden behind you. If you don't have it yet, we will consider a reduction in executive salaries as a way to show the team that everyone is feeling pain. When you are enhanced, you can also consider reducing cash spending and reducing the yea r-end determination. Things are one of the options.
But one of the CEOs we know is negative to this idea. No matter what you say, people never feel good, and are always trying to return themselves. Don't promise that you never return. It sticks to the opponent's head and makes you tired. "
When Reeff is announced, it will be the most difficult day in any young startup history. It is incredibly difficult to say goodbye to the excellent human resources you handle and hired, the people who helped you to reach the current company. Of course, it is unimaginable for the affected people. It is also important to recognize that the dismissal of team members today in April 2020 has an uncertain future employment outlook, so it is fundamentally different from dismissal in other circumstances. 。

3. Look into venture debt options.

Once you have decided to organize the personnel, don't need to do the next round. Once once, the morale tends to reduce morale, so if possible, I want to do it only once. Also, let's consider temporarily returning as one of the options. A temporary home holiday is a forced job suspension without paid. In some cases, the continuation of health allowance is included, or not. If you want to continue your health allowance, you need to make sure that it is possible in the plan clause. Employees who have been suspended from qualifications have the right to apply for unemployment and are prohibited from working for the employer. As a result, fired employees are usually deprived of accounts and business devices to prevent good intentions from causing the law to pay for payment.

It is recommended that you consult an employment lawyer because there are many problems before performing a larg e-scale layoffs and bubbles.

PART 7: SUPPORTING YOUR TEAM AND LEADING THROUGH A CRISIS

Two weeks ago, 7 % of founders answered that they had reduced their personnel. As of April 9, it has increased to 19 %.

Leading through uncertainty:

Twice, "First, think about whether to cut or not cut. Mighty Networks Gina Biancini CEO said," If the situation is still unclear, the team will soon get fired. I don't think it's the answer. " How do you sell it? Who do we know? Then, if you rebuild or r e-place the team, we will consider how much money is notted. " "After all, if you want to reduce the number of staff in an unpacked market, it will be thoroughly reduced. It is not uncomfortable. It is not that the founder is in the market. It is not a good idea to be in the same night to have a team in a situation where you do not speak honestly. Not, but as a founder, we often feel it: "I hired this person and I was disappointed." If the market has changed overnight, that's not the case. Once you decide to organize the personnel, don't need to do the next round. Once once, the morale tends to reduce morale, so if possible, I want to do it only once. Also, let's consider temporarily returning as one of the options. A temporary home holiday is a forced job suspension without paid. In some cases, the continuation of health allowance is included, or not. If you want to continue your health allowance, you need to make sure that it is possible in the plan clause. Employees who have been suspended from qualifications have the right to apply for unemployment and are prohibited from working for the employer. As a result, fired employees are usually deprived of accounts and business devices to prevent good intentions from causing the law to pay for payment.

It is recommended that you consult an employment lawyer because there are many problems before performing a larg e-scale layoffs and bubbles.

Two weeks ago, 7 % of founders answered that they had reduced their personnel. As of April 9, it has increased to 19 %.

Twice, "First, think about whether to cut or not cut. Mighty Networks Gina Biancini CEO said," If the situation is still unclear, the team will soon get fired. I don't think it's the answer. " How do you sell it? Who do we know? Then, if you rebuild or r e-place the team, we will consider how much money is notted. " "After all, if you want to reduce the number of staff in an unpacked market, it will be thoroughly reduced. It is not uncomfortable. It is not that the founder is in the market. It is not a good idea to be in the same night to have a team in a situation where you do not speak honestly. Not, but as a founder, we often feel it: "I hired this person and I was disappointed." If the market has changed overnight, that's not the case. Once you have decided to organize the personnel, don't need to do the next round. Once once, the morale tends to reduce morale, so if possible, I want to do it only once. Also, let's consider temporarily returning as one of the options. A temporary home holiday is a forced job suspension without paid. In some cases, the continuation of health allowance is included, or not. If you want to continue your health allowance, you need to make sure that it is possible in the plan clause. Employees who have been suspended from qualifications have the right to apply for unemployment and are prohibited from working for the employer. As a result, fired employees are usually deprived of accounts and business devices to prevent good intentions from causing the law to pay for payment.

It is recommended that you consult an employment lawyer because there are many problems before performing a larg e-scale layoffs and bubbles.

Two weeks ago, 7 % of founders answered that they had reduced their personnel. As of April 9, it has increased to 19 %.

Leadership tactic recommended by current CEO in First Round community:

Twice, "First, think about whether to cut or not cut. Mighty Networks Gina Biancini CEO said," If the situation is still unclear, the team will soon get fired. I don't think it's the answer. " How do you sell it? Who do we know? Then, if you rebuild or r e-place the team, we will consider how much money is notted. " "After all, if you want to reduce the number of staff in an unpacked market, it will be thoroughly reduced. It is not uncomfortable. It is not that the founder is in the market. It is not a good idea to be in the same night to have a team in a situation where you do not speak honestly. Not, but as a founder, we often feel it: "I hired this person and I was disappointed." If the market has changed overnight, that's not the case.

Think scene, bring all your EQ to bearMatt Sanchez, who founded VideoEgg (now SAY Media) during the last recession, believes layoffs may be necessary in many cases in this environment. "For companies with no revenue or in the early stages of achieving product-market fit, deep and fast burn management is absolutely the way to go, even if it's a scary step. For companies with significant revenue, cut back to conservatively projected operating margins," he says. "Do everything you can to make rational, fact-based decisions, but bring as much EQ as you can to leadership and execute with compassion.

Avoid across-the-board cuts. When deciding where to cut, Simon Khalaf, former CEO of Flurry Analytics, recommends that CEOs avoid across-the-board cuts. "Remember, when you reboot a computer, it usually doesn't reboot in the same state. Don't feel like you have to cut the engine, operations, sales, and marketing equally," he says.
Keep the sales candle burning while focusing on the productJud Valesky was working at Gnip during the 2008 recession. As a result of focusing on the product, they realized they had too many people to build and support the product they really wanted to build, so they let go of a third of their team. "We kept someone in sales to stay on top of how the business was reacting and adapting."
And then he got a new tattoo. "After Lehman in 2008, we quickly laid off a third of the company (about 60 people). It was hard at first, but the remaining team was amazing and we were able to accomplish more with less, which shocked us," says Jive founder and CEO David Hirsch. Right after the layoffs, I told the company that if we hit our fourth-quarter goal of $8 million, I'd get a number 8 tattoo. We did. I still have it. I love what it symbolizes. "I might suggest lowering the stakes and doing karaoke or something."
Round One Review Article by Sam Shank: How HotelTonight went from a multi-million dollar deficit to profitability in seven months
Round One Review Interview by Beth Steinberg: How to lead and rally your company through layoffs

Taking care of your team:

Video from the First Round CEO Summit archives: The taboo topic of what to do about layoffs

Andrisen Hollowitz blog post on planning and management planning and management

Tactics recommended by current CEOs in First Round community:

Twitter thread of a ste p-b y-step guide for Rayoff by Alex Miller.
Carta's CEO posted a frank speech that was given to the details of Reof.
Here are three strategies to expand the passage by addition. (Note: Ranked from the best options to the worst options).
When it comes to interacting with prospects and existing customers, all movements may seem wrong. Because the bandwidth and budget are limited, I do not want to be a burden, but when adjusting prospects, I want to cover the probability of the sales pipeline.

Focus on prepayment from the most adhesive customer. Especially in the SaaS business, you ask for a prepaid contract and discount to get it. The sales team will be strongly working to get a prepaid contract for more than 12 months, and will reward with bonuses. This is the cheapest financing method.
Learn from customers as much as possible. The key is to understand how this affects them, as they are likely to concentrate on surviving. On the other hand, repeat your positioning as much as possible. "Let's start with the person who sells. Understand their psychology and anxiety about their survival. The best companies focus on what the buyers really care about, that is, to quickly remove costs from the books. You can change your positioning, "says Bill Trentignard, the first partner. Andrisen Hollowitz blog post on planning and management planning and management
Twitter thread of a ste p-b y-step guide for Rayoff by Alex Miller.
Carta's CEO posted a frank speech that was given to the details of Reof.
Here are three strategies to expand the passage by addition. (Note: Ranked from the best options to the worst options).

Staying connected amid the shift to remote work:

When it comes to interacting with prospects and existing customers, all movements may seem wrong. Because the bandwidth and budget are limited, I do not want to be a burden, but when adjusting prospects, I want to cover the probability of the sales pipeline.

There is no more important time to avoid losing customers. Consider receiving a complete customer review to understand the health of the customer base. For many entrepreneurs, customer reactions are everywhere. Some companies want to deepen their partnerships, while others freeze everything. Put all the potential customers who are hit in the bucket and look at this dashboard every week.

Advice for keeping your team connected from recession-era founders:

Focus on prepayment from the most adhesive customer. Especially in the SaaS business, you ask for a prepaid contract and discount to get it. The sales team will be strongly working to get a prepaid contract for more than 12 months, and will reward with bonuses. This is the cheapest financing method.
Learn from customers as much as possible. The key is to understand how this affects them, as they are likely to concentrate on surviving. On the other hand, repeat your positioning as much as possible. "Let's start with the person who sells. Understand their psychology and anxiety about their survival. The best companies focus on what the buyers really care about, that is, to quickly remove costs from the books. You can change your positioning, "says Bill Trentignard, the first partner. Andrisen Hollowitz blog post on planning and management planning and management
Twitter thread of a ste p-b y-step guide for Rayoff by Alex Miller.
Carta's CEO posted a frank speech that was given to the details of Reof.

Communication tactics recommended by current CEOs in First Round community:

Here are three strategies to expand the passage by addition. (Note: Ranked from the best options to the worst options).
When it comes to interacting with prospects and existing customers, all movements may seem wrong. Because the bandwidth and budget are limited, I do not want to be a burden, but when adjusting prospects, I want to cover the probability of the sales pipeline.
There is no more important time to avoid losing customers. Consider receiving a complete customer review to understand the health of the customer base. For many entrepreneurs, customer reactions are everywhere. Some companies want to deepen their partnerships, while others freeze everything. Put all the potential customers who are hit in the bucket and look at this dashboard every week.
Focus on prepayment from the most adhesive customer. Especially in the SaaS business, you ask for a prepaid contract and discount to get it. The sales team will be strongly working to get a prepaid contract for more than 12 months, and will reward with bonuses. This is the cheapest financing method.

Learn from customers as much as possible. The key is to understand how this affects them, as they are likely to concentrate on surviving. On the other hand, repeat your positioning as much as possible. "Let's start with the person who sells. Understand their psychology and anxiety about their survival. The best companies focus on what the buyers really care about, that is, to quickly remove costs from the books. You can change your positioning, "says Bill Trentignard, the first partner.

Dolla r-led growth, "Kara" produc t-led produc t-led product, says, Tech Forward and the former CEO of All Trails, Jade Van Doren, says, "In the bullish market, the founders are more concentrated on growth. In the case of a downturn, you will have to face more difficult businesses through the optimization of the product, the optimization of a channel. The growth in accordance with the financial discipline by channel improvement is often slower than investing in advertisements, but the business value is high in any sales because of the improvement of capital efficiency. "Buy instead of making". As Gnip's former member Jud Valesky mentioned earlier, he regarded the 2008 sales crisis as a good opportunity to concentrate on the product. "We needed to build a product to be built without being instructed by the prospective customers. Many of our customers were dismissed, but their business requirements were still dismissed, but their business requirements. Because we were looking for the functions to provide, we could easily provide what they decided to make. At the root of our games, it was a good time to buy something like this instead of building costs.
Dolla r-led growth, "Kara" produc t-led produc t-led product, says, Tech Forward and the former CEO of All Trails, Jade Van Doren, says, "In the bullish market, the founders are more concentrated on growth. In the case of a downturn, you will have to face more difficult businesses through the optimization of the product, the optimization of a channel. Growth in accordance with the financial discipline is often slower than investing advertisements, but it will increase its business value in any way. I will buy a message saying. As Gnip's former member Jud Valesky mentioned earlier, he regarded the 2008 sales crisis as a good opportunity to concentrate on the product. "We needed to build a product to be built without being instructed by the prospective customers. Many of our customers were dismissed, but their business requirements were still dismissed, but their business requirements. Because we were looking for the functions to provide, we could easily provide what they decided to make. At the root of our games, it was a good time to buy something like this instead of building costs.
Dolla r-led growth, "Kara" produc t-led produc t-led product, says, Tech Forward and the former CEO of All Trails, Jade Van Doren, says, "In the bullish market, the founders are more concentrated on growth. In the case of a downturn, you will have to face more difficult businesses through the optimization of the product, the optimization of a channel. Growing in accordance with the financial discipline by channel improvement is often slower than investing in advertising, but improving capital efficiency, the business value is higher in any sales.
Cheaper and more value. It is not "usual business". Nobody cares even if you send eight sending emails in a row. No one wants to call your SDR for 30 minutes now. They have had an excuse to ignore you for a long time, but now they actually have an excuse, "said Gina Biancini (President of Mighty Networks and Ning). Many emerging companies may focus on attracting new customers with fleaimum models and discounts, but they oppose this approach. "At that time, you may feel good, but you may be able to faster the startup's death. The conversion rate for those who are used to it will probably be much lower than expected. Instead, consider creative sales and marketing activities for the network you already have. "How can we reconstruct the package to provide insane value at the premium price to those who already have a relationship? Do you want to be a chance to go to the person you are dating now and you can't refuse to switch to additional products. ?
Fly the customers to the goal with the "shock and awe" approach to provide value.
For each account executive, identify two or three offers that can be contracted at a cheaper cheaper.
Present more flexible conditions, such as delaying the start date, paying for each quarter, or optional options for a specific period. It is important to maintain the relationship, even if the level falls.

Consider creating a hierarchy that provides various levels of customers, such as three years of prepaid contracts, annual payments for three years, and annual payment for one year.

Share your business continuation plan and how to reduce risk with prospects and renewers. cheaper and more value. It is not "usual business". Nobody cares even if you send eight sending emails in a row. No one wants to call your SDR for 30 minutes now. They have had an excuse to ignore you for a long time, but now they actually have an excuse, "said Gina Biancini (President of Mighty Networks and Ning). Many emerging companies may focus on attracting new customers with fleaimum models and discounts, but they oppose this approach. "At that time, you may feel good, but you may be able to faster the startup's death. The conversion rate for those who are used to it will probably be much lower than expected. Instead, consider creative sales and marketing activities for the network you already have. "How can we reconstruct the package to provide insane value at the premium price to those who already have a relationship? Do you want to be a chance to go to the person you are dating now and you can't refuse to switch to additional products. ?
Fly the customers to the goal with the "shock and awe" approach to provide value.
For each account executive, identify two or three offers that can be contracted at a cheaper cheaper.
Present more flexible conditions, such as delaying the start date, paying for each quarter, or optional options for a specific period. It is important to maintain the relationship, even if the level falls.

PART 8: ENDING ON A HIGH NOTE — THE UPSIDE AND THE NEXT WAVE

Consider creating a hierarchy that provides various levels of customers, such as three years of prepaid contracts, annual payments for three years, and annual payment for one year.

Advice from the First Round team:

Share your business continuation plan and how to reduce risk with prospects and renewers. Cheaper and more value. It is not "usual business". Nobody cares even if you send eight sending emails in a row. No one wants to call your SDR for 30 minutes now. They have had an excuse to ignore you for a long time, but now they actually have an excuse, "said Gina Biancini (President of Mighty Networks and Ning). Many emerging companies may focus on attracting new customers with fleaimum models and discounts, but they oppose this approach. "At that time, you may feel good, but you may be able to faster the startup's death. The conversion rate for those who are used to it will probably be much lower than expected. Instead, let's consider creative sales and marketing activities for the network you already have. "How can we reconstruct the package to provide insane value at the premium price to those who already have a relationship? Do you want to be a chance to go to the person you are dating now and you can't refuse to switch to additional products. ?

Fly the customers to the goal with the "shock and awe" approach to provide value.

For each account executive, identify two or three offers that can be contracted at a cheaper cheaper.

Present more flexible conditions, such as delaying the start date, paying for each quarter, or optional options for a specific period. It is important to maintain the relationship, even if the level falls.

Consider creating a different level of customers, such as thre e-year prepaid contracts, annual payments for three years, and annual payment for one year.

Share your business continuity plan and how to reduce risk with prospects and renewers.

Advice from recession-era founders:

Reproduce all important factors, from customer priority to solution impacts and buyers.

Check that some customers who have established a good relationship have been able to seek advice on how to deal with crisis and reconstruct products. Doing so will increase the relationship with customers and increase the possibility of maintaining a relationship with customers.

Additional resources for revenue

Advertising performance under analysis by social full clam

Work bench business sales guide: COVID-19 version

HARVARD BUSINESS REVIEW Coronavirus is a tip of brand marketing that survives crisis.

Teamfit's c o-founder Steven Forth describes the price setting in uncertain era.

Camelot Slide Deck: COVID-19-See the influence of US media as soon as possible

According to an internal survey, only 12 % of the founders of the company we surveyed, as of March 24, anticipated that the procurement in the next round would be smaller than planned. By April 9, this number doubled to 25 %.
It must be remembered that if you decide to raise funds in such a situation, the financing process may take a lot of time. In recent years, make a si x-month plan, not a short timeline that some emerging companies have enjoyed. If you can set it under the same conditions as the previous round, consider this option (assuming that the round is recent and not dramatically outperformed). Procply to the safe at the previous round price (as appropriate) and set the funds promptly. Also consider spinning to the loser. If there is a VC who couldn't participate even if he wanted to participate in the final round, call them. You may also consider the top of the late fund. Valuations are always important, but comparative public valuations can fall by more than 25 %. Proper of all important factors, from customer priority to solution impacts and buyers.
Check that some customers who have established a good relationship have been able to seek advice on how to deal with crisis and reconstruct products. Doing so will increase the relationship with customers and increase the possibility of maintaining a relationship with customers.
Additional resources for revenue
Advertising performance under analysis by social full clam

Elim Poon - Journalist, Creative Writer

Last modified: 27.08.2024

In this groundbreaking book, Nobel Prize winning economist and New York Times bestselling author Robert Shiller offers a new way to think about the economy and. Advice from recession-era founders on runway: · Get cash early and make it last. · Get capital by not needing it. · Think about future impact, not. Using incisive analysis built upon frameworks, historical context, and structural narratives—what they call "economic eclecticism"—the book empowers readers.

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