Startups are instrumental in pushing the boundaries of what is possible, driving technological innovation, and determining the future of societies and economies worldwide. Startups want to innovate and scale, which they have done for decades boosted by an unprecedented low interest rate environment.
Yes! Venture Capital money has washed up startups with cash which allows them to develop and grow their businesses. Because innovation and scalability play pivotal roles in startups’ success, they did precisely that – hiring more staff.
Considering startups’ characteristics as “cash burners” and for the substantial majority not profitable, how would they navigate through economic uncertainty without giving up on their core values?
Avoid Vendor Lock- ins
Vendor lock-in offers are often mentioned but are frequently misunderstood. They should be avoided as they can limit startups’ flexibility, increase costs, and hinder innovation. Whether dealing with specific software, Customer Relationship Management systems or a cloud provider, one must ensure working with systems that allow flexibility through hybrid environments and service portability to reduce dependency while retaining the ability to switch providers.
Grow your Team Efficiently
As a startup with a commitment to change the world using technology, the temptation to hire a fleet of developers is great. Especially when the cash is there. Yet this can be an expensive trap considering all the expenses related to the expansion of a DevOps team. In this scenario, a startup leader should consider working with a trusted partner to accelerate the development of some projects.
Diversify the Product and Revenue Sources
This one was inspired by Osmin Callis founder and CEO of Venture Studio. In her weekly post she explained that diversification of product and revenue sources can be a great strategy to mitigate risks while navigating uncertain economic environments by allowing startups to adapt to changing market dynamics. To align with startups’ core values, forensic market research and complementary product identification would have to be conducted.
We understand that one size doesn’t fit all and that every startup goes through a unique path. Your experiences and perspectives are very important to us. That’s why we urge you to leave your ideas, observations, and experiences in the comments box below.
Our goals are to support startups and help them succeed in their mission. So, feel free to contact us for any related inquiries. Visit our blog for more useful tips. Listen to our podcast to learn how other startup CEOs successfully navigate their companies.