1/Founders of real-world startups (RWS): If you're running a business in the real world & you've lost 80-100% of your revenue your job is to survive so that you can hire everyone back when consumers return sometime in the next 6 months
Here's what I'm seeing... it's terrifying:
2/Unless a "real-world startup" (RWS) happens to have a year of cash in the bank (~20% of RWS in my experience) they are #furloughing everyone & giving select team members consulting gigs (or sometimes one FT person) so they can manage OIH:
"operations in hibernation" 🐻
3/founders are setting benchmarks for coming out of hibernation, like "when we can sell our product again we will bring back 2 team members" & "When we hit 75 orders a day for 10 days we will bring back another team member"
This uncertainty is brutal for founders & teams ☹️
4/Fundraising is turned off for RWS, as investors seem to think it's hopeless to meet with these business until we know the outcome of #SiP
It's logical, as investors need to preserve capital for digital companies, which are a mixed bag of surging revenue, sideways & down 🤷♂️🤷♀️
5/board rooms & management teams have moved quickly from confusion to shock and now on to capitulation:
"OH MY GOD!!!"
No one knows the future, so an abundance of caution is the new standard.... and that's the big problem:
6/with so many folks hibernating & investors pausing, RWS are pausing on paying their bills (!!)
monetary velocity is slowing to a halt... with this business slow down folks are not spending on marketing... so journalism is decimated & obviously SaaS spending will be reexamined
You can follow @Jason.
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