Tip Number 1- Keep an eye out for ways to find investors– One of the local VCs are compiling startups looking for VC investment and making it available to the VCs. They are not changing anything which makes this a good thing to do. If that changes then let me know – LIST HERE
Tip Number 2 – Stay informed on how fundraising is changing in these uncertain times – On Tuesday, March 24th at 9:00am PT Brex’s co-CEO & cofounder, Henrique Dubugras with CFO Michael Tannenbaum will be hosting the first Brexfast in Bed webinar called “Startup Fundraising in Today’s Environment.”RSVP HERE to cover topics like how many startups are beginning to shift from a grow-at-all-costs mentality to one that considers profitability as well. Don’t worry if you missed the webinar, you can still get all the insights on their blog post:
What is crowdfunding?
Tip Number 3 – Expert DOJO is closed over this period to keep our team and cohort safe, but we remain there for you in a virtual manner. Stay informed about the latest developments to stay safe – INFO HERE
Tip Number 4 – Your clients are at home and bored and reachable for the first time ever. Use this time to be aggressive about pushing your products – This is a good example of how companies are adapting their message for major success – VIEW HERE
Tip Number 5 – Stress test your company : If you were planning to raise money in the next 18 months, you need to assume that is now off the table, as Olsen said. The way to correctly stress test your business is to reduce current MRR by 30% while keeping operating expenses constant. If this math suggests you have enough balance sheet to survive 18 months, you have a high probability of surviving this crisis. If the answer is less than 18 months, work with your board and current shareholders NOW to pre-emptively get the financial commitments and plans to RIF established before this crisis deepens.
Tip Number 6 – Pull down all available debt capacity you have NOW: Cash is of the essence, and it will likely be more difficult to come by as the situation evolves.
Tip Number 7 – Pause all hiring plans: Your burn rate aside, now is not the time to be adding people to your team. Now is the time to work to create a sense of normalcy for your existing employees who are working in a world that is very different from where they started the month. Headcount is a part of burn and will need to be managed. There are difficult decisions for everyone ahead and adding anyone to your team will not make these decisions easier.
Tip Number 8 – Do not hesitate: The cost of making bad decisions is higher during a crisis than a growth environment, but you still have to make decisions. Hesitating is the worst thing you can do. Set your expectations that painfully wrong decisions will be made, but know that you will get just as many right. You have to be a war time CEO.
This is when great companies get molded. Fight like your life depends on it.