
Moves to survive and thrive in a downturn - domrdy
https://www.nfx.com/post/28-moves-survive-thrive-downturn/
======
vorpalhex
"How to lose your customers and ruin your business in a few shortsighted
steps"

From making quick layoffs in a highly volatile economy to automating support
inquiries during a time when customers more likely need personalized
responses, I don't know if there's a single thing on this list that isn't the
equivalent of shooting yourself in the foot.

> 10x your product.

And 1/10x your customer support! This is definitely the time people will buy
the most expensive product with the least decent support.

> Turn fixed costs into variable costs.

So you can have more surprise bills!

But my favorite is:

> Be committed to building a high-performance culture. In a downturn, everyone
> must perform. This becomes non-negotiable.

Ah yes, the "work hard or else" mentality that will definitely help you keep
your top talent during a tough time when significant parts of your workforce
are likely to get sick and need flexibility.

Let me make a different recommendation:

This is a _volatile_ time. Volatility works both directions, and it may mean
both ups and downs. Focus on what differentiates you - and usually that means
answering the phones when your customers call, having staff who can actually
solve problems (eg, good talent who is happy to be working with you) and a
real product that brings value.

Yes, there is value to being adaptable, and part of adaptability is letting go
of non-value focused things. There are ways to do that without being a jerk to
your employees and customers. Those who don't understand this are doomed to
fail no matter what they do.

~~~
algo_trader
Dude, like what's your suggestion?

If your savings are cut in half, wont u make some life changes? If funding is
twice as hard for half the amount, dont u make some tough steps?

~~~
Spartan-S63
If your company can't survive several quarters without fundraising, you
probably haven't found your product-market fit and the value you're providing
is probably suspect, in my opinion.

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growlist
After watching a number of downturns over the decades I've become prudent,
even parsimonious in my approach to outgoings. The result is that even though
my pay is average and I live where house prices are high, at times like these
I don't have to lose sleep about losing my shirt. From a position of having
missed out on ridiculous house price rises over the years, and driving my old
car whilst so many other people swanned around in fancy new cars they could
not really afford but for credit plans, it's extremely difficult not to feel
like the chickens are coming home to roost for those that refused to learn the
lessons of history. I mean, the GFC is barely a decade past!

~~~
nogabebop23
I understand (and even reflect your choices with my own) but you are coming
precariously close to sounding like the well-prepared ant smugly watching the
hungry grasshoppers. Now is when we need you to double-down on compassion;
your preparation was not just for your survival but towards a much bigger
challenge!

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Swizec
Here’s what works for me (I think/hope)

1\. Think of money put into index funds as an “expense”

2\. If investments are on fire, that’s okay. You weren’t gonna use them for
the next 10 or 20 years anyway

3\. Invest in yourself

4\. Diversify your income streams. Even $2k/mo on the side can really help

5\. Cash savings. Never let a loss of income impact your livelihood

6\. Keep adding to savings even when you think you can’t

7\. Your skills and your network are an asset. Use them

~~~
__s
> even $2k/mo on the side can really help

Bought a house few years ago living on $2k/mo. Finished paying it off last
year. Good spending habits go far

~~~
Swizec
Congratz!

The number is of course contextual. $2k in SF is less than $2k in rural Europe
:)

Where I’m from that $2k is what you’d call an engineering salary. Where I’m
now, it’s a nice solid bonus on top.

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algo_trader
NFX seems to put out very good tools to connect and pitch (SIGNAL is a gold
mine of potential connections. I never noticed BRIEF before).

But has anyone successfully connected through the site? I am wondering if this
is any better than a typical cold pitch email.

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IAmEveryone
What a bunch of vacuous pop-psychology marketing bullshit.

I guess we should be happy this guy isn’t writing about his favorite
Coronavirus treatment on Medium, like all the other telephone sanitizers are.

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323454
As they say, never let a good crisis go to waste.

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natch
Spam, flagged.

