Day 506 - In recession there's opportunity - https://golifelog.com/posts/in-recession-theres-opportunity-1653102757799
There's a YC letter to founders about the coming economic recession that's making it rounds. It's pretty sombre, and a warning to startup founders especially the VC-funded ones. Of course there will negative impact across the board, whatever kind of business you are.
Downturns means less revenue and profit. Companies shrink spending. People earn less. People spend less too. So trying to improve your margins and reduce costs will be a great move for any situation, any business.
But there's one particular paragraph (the last one) in the YC letter that's worth a second glance, because it sounds like a great opportunity:
> "Many of your competitors will not plan well, maintain high burn, and only figure out they're screwed when they try to raise their next round. You can often pick up significant market share in an economic downturn by just staying alive."
I absolutely love how my default mode of existence—aka surviving, staying alive— as an indie creator, bootstrapped founder is now a strategic advantage in the coming economic downturn.
In chaotic times, cockroaches > unicorns.
In fact, like how they say cockroaches will become the dominant species in a nuclear apocalypse, there's a huge opportunity now for the little guys to hustle for market share and customers when your VC-funded startup competitors fail.
In crisis, there's opportunity.
It's going to be interesting to watch for headlines of SaaS startups shutting down. How fast can you move in to make a product that can capture some of that market as an indie founder? What market gaps will emerge?
Now is the time to chase that.
Downturns means less revenue and profit. Companies shrink spending. People earn less. People spend less too. So trying to improve your margins and reduce costs will be a great move for any situation, any business.
But there's one particular paragraph (the last one) in the YC letter that's worth a second glance, because it sounds like a great opportunity:
> "Many of your competitors will not plan well, maintain high burn, and only figure out they're screwed when they try to raise their next round. You can often pick up significant market share in an economic downturn by just staying alive."
I absolutely love how my default mode of existence—aka surviving, staying alive— as an indie creator, bootstrapped founder is now a strategic advantage in the coming economic downturn.
In chaotic times, cockroaches > unicorns.
In fact, like how they say cockroaches will become the dominant species in a nuclear apocalypse, there's a huge opportunity now for the little guys to hustle for market share and customers when your VC-funded startup competitors fail.
In crisis, there's opportunity.
It's going to be interesting to watch for headlines of SaaS startups shutting down. How fast can you move in to make a product that can capture some of that market as an indie founder? What market gaps will emerge?
Now is the time to chase that.
