Get Ahead of the Economic Fallout

I’ve been working through contingency plans with a number of technology start ups and the main emphasis is always conserve capital. With each company we aim to get ahead of the crises in terms of cost reduction, making pre-emptive cuts rather than reacting to revenue drops.

I suggest modeling out 100%, 200%, 300% and 400% increases in churn along with 25%, 50% and 75% reduction in new business.  Most companies I work with are already actioning plans to cost cuts in line with the least pessimistic assumptions (100% increase in churn and a 25% drop in new business) and preparing to go to the next level in order to stay ahead of the economic crises. 

Redundancies can seem inevitable, however consider lay-offs, or unpaid/partial payment time off. Remember to treat staff well as you’ll need them fully bought in. 

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