Thread by @TheSwamy

#FOUNDERS #STARTUPS #PostCoronaMindset

1/I'm super impressed by all founders I've spoken to in the last week - every one of them recognizes things have changed & are proactively taking steps to not be in a position where they run out of money before June 2021

2/Even those who were planning to raise are now going back to their WorkSheets & doing zero-based planning and asking questions - is this a vitamin or an aspirin (want or need) - & if its a need, is there a smarter way to do this.

3/Thankfully, in almost all cases, well run companies figure out ways to do this with zero/minimal job cutting and cash infusion. Companies that are prudent with cash expenses & collections almost always come out stronger in such situations.

4/The best analogy IMO is driving a car - even when you're on a freeway, you can't be doing 100Mph at all times. Sometimes need to slow-down, take a break, adapt to the traffic conditions and be ready to accelerate when the opportunity presents itself.

5/Given the uncertainty of the conditions ahead, best to use the opportunity to plan for the next 12-15 (ideally 18) months ahead, add the "uncertainty period" & do things that you always needed to do but took a back seat in favor of growth or other (sometimes vanity) metrics.

6/A few unpopular things to look at as you clean shop
- Become 100% DD ready for your next financing
- Get your company books and compliances in order
- Collect the money you never did but assumed it wasn't important
- Employee/Vendor/Customer contracts
- Budget realistically

7/Realistic timeframes should assume 90 days of zero revenues or zero growth and 12 months for recovery to February levels - yes, its an 18 month hit we are all likely to take - but guess what, this is as uniform and unfair to everyone, including your competitors, so don't worry!

8/Although this sounds motherhood and applepie-ish, always build for the long-term - almost every startup will have to face ONE MAJOR SPEEDBUMP in its journey - whether it was Salesforce or Google with 2001 or Facebook with 2008 - all came out of it stronger.

9/For those starting out now, this is as good a time as any to startup. Remember Uber and AirBnb came out of the 2008 crisis where people needed to make owning a home or a car viable and mindsets had shifted - for ever!

Ask yourself - what consumer mindset has changed now?

10/For example, the obvious one everyone is thinking about is that working remotely is not going to be a short-term thing - the change is going to be a permanent and several companies are going to be more comfortable with it for a variety of reasons-traffic, real-estate, talent.

11/I'm personally concerned for the short-term, guardedly optimistic about the medium-term & of course very optimistic about the long-term!

Several new problems will need to be solved by startups. Keep your chin-up, be practical, focus on problem-solving & think ahead!👍