Joining forces with another startup might help you survive a recession, and perhaps even make your company a more efficient one.
Take a closer look at any of the various economic indicators out there - and there are many - and one will notice that although the inevitability of a full-blown recession might be debatable, the hard times are here to stay.
At least for a little while longer. At this point in any sustained economic downturn, and I am old enough to have been old enough during the last (major) one: The Great Recession, folks start to look for signs of a bottom, take inventory of their future assets and try to do the best they can to keep moving forward.
I guess, come to think of it, this is the natural response to any type of uncertainty in life. So, sure, we are all feeling the heat in this marketplace. But for my tribe: Entrepreneurs, things have gotten really "hot" over the last year.
A hard landing
Inflation, tightening of credit markets and capital markets, and a whole slew of other structural issues. Safe to say... things are pretty tight.
And while the is no short-term fix for the hole we all seem to have dug ourselves into- as a global community, or rather was excavated for us by the pandemic and all the other associated issues, there are some things folks in the startup community and the larger "entrepreneur" space can do to position themselves to win.
What would the big guys do?
At this point, it is crucial that folks start to look at themselves and their organization and act as the larger corporations do. And the one major thing we can do right now as entrepreneurs to make sure that when the dust settles and the smoke clears we are still standing is to combine our resources.
For real! It is time to reach out to the other small firms you know and discuss ways in which you can mutually benefit via some type of collaborative effort. For some, this could mean an all-out partnership, especially if you know CEO's out there who are cash hoarders. Folks with beautiful balance sheets. You know the type of folks I am talking about. And if you don't, it is time to get out there and find one. A business Sugar Daddy of sorts.
Just a couple of ideas
Sharing operating expenses could also be a topic of discussion. Why not have one shared software development team instead of two?
Why not combine our resources to help streamline our marketing dollars?
These are some of the ideas that when executed properly can help you survive this economic storm that we continue to face.