Startup. Who would be crazy enough to open or join a startup today? Inflation is rising, the economy is shrinking, productivity is flat, and stagflation and recession seem imminent. Companies are downsizing, unicorns turn out to be just ponies, and talented people are wondering if to stay or go. So it’s only fair to think that opening or joining a startup during this time is madness! At least at first.
I have no idea how much worse the economy will get, how long it will last, or even what improvement looks like. And, I suspect that the world will look a little different at the end of this period than it does today. For some, this period will be a challenge. Companies that are not profitable today will be less likely to survive this downturn and die. For others, this is an opportunity to become more efficient at creating something people want and are willing to pay for. Companies that survive will become stronger, more efficient, effective, and with fewer competitors.
Most startups die in a good economy. More die in a shrinking bear economy. However, the principles for opening a startup have not changed! A startup’s advantage is not in size but incredible efficiency and agility. Companies die because it is tough to create something people want and are willing to pay for. A shrinking economy is an even harder filter for product value. If a company has managed to create something valuable during this time, it is likely to become even more successful when the economy expands.
Dana and I appreciate the global economic uncertainty. We are obsessed with creating a valuable product that will delight and help customers so much that they will be happy to buy in a good and bad economy. We take seriously our role as fiduciaries for our investors – Sunil Dhaliwal and the team at Amplify Partners, and our fantastic angel investors. We understand our responsibility to our employees and customers to manage the company carefully so that we see through the tough times ahead – and thrive!
Does this sound like something you would like to be a part of? Check out our career page!