Day 514 - Readying for recession - https://golifelog.com/posts/readying-for-recession-1653788347642
I wrote about how in recession there was opportunity. But it’ll also help to get prepared and ready for it. In any downturn, consumption goes down. People spend less. Indie hackers and solo creators might still end up feeling the downstream impact of less consumer dollars going around.
So what’s a solopreneur to do in times of an economic downturn? Brainstorming some ideas:
Lower costs
• Ask for discounts to SaaS subscriptions
• Reduce burn rate and fixed expenses e.g. rent, hires, overheads
• Eliminate luxury expenses e.g. lavish WeWork office subscriptions
• Drop the co-working hot desk/expenses on lattes in cafes - work remotely at home
• Reevaluate your monthly/annual budgets for everything
• Pay off high-interest debts, don’t take on new debts
Increase revenue
• Ask for or add an annual subscription for upfront cash
• Build products quickly in market gaps where VC-funded startups failed and left
• Start a side hustle or venture into a new category - the more recession-proof type of work/product, the better
• Learn new skills that could come in useful later
• Rethink your financial investments
Maintain buffers
• Shore up more cash reserves, emergency funds
• Have backup plans - Plan Bs, Plan Cs
• Borrow instead of cash upfront (where it makes sense, if loan is cheaper or low interest vs less liquidity)
• Find legal ways to reduce tax burden, find what’s tax-deductible
Generate goodwill
• Help others out - those who are laid off or in financial distress
• Give away free resources or content
• Network more, build connections and relationships
• Make introductions
• Give references for job interviews
• Collaborate for collective benefit
What else did I miss?
So what’s a solopreneur to do in times of an economic downturn? Brainstorming some ideas:
Lower costs
• Ask for discounts to SaaS subscriptions
• Reduce burn rate and fixed expenses e.g. rent, hires, overheads
• Eliminate luxury expenses e.g. lavish WeWork office subscriptions
• Drop the co-working hot desk/expenses on lattes in cafes - work remotely at home
• Reevaluate your monthly/annual budgets for everything
• Pay off high-interest debts, don’t take on new debts
Increase revenue
• Ask for or add an annual subscription for upfront cash
• Build products quickly in market gaps where VC-funded startups failed and left
• Start a side hustle or venture into a new category - the more recession-proof type of work/product, the better
• Learn new skills that could come in useful later
• Rethink your financial investments
Maintain buffers
• Shore up more cash reserves, emergency funds
• Have backup plans - Plan Bs, Plan Cs
• Borrow instead of cash upfront (where it makes sense, if loan is cheaper or low interest vs less liquidity)
• Find legal ways to reduce tax burden, find what’s tax-deductible
Generate goodwill
• Help others out - those who are laid off or in financial distress
• Give away free resources or content
• Network more, build connections and relationships
• Make introductions
• Give references for job interviews
• Collaborate for collective benefit
What else did I miss?