DISQUS

Instigator Blog: http://www.instigatorblog.com/startup-reality-survive-or-die-quickly/2008/12/02/

  • Alain Theriault · 1 year ago
    Part of being a strong entrepreneur is having a healthy Ego. But the Ego gets in the way of many decision (often the bad ones). I this case, it will certainly play in the decision to "hang on". Recognizing this and threading the fine line between pride and ego will dictate the best decision and put the entrepreneur in a better state of mind for the second round.
  • Dan Thornton · 1 year ago
    While I agree with almost everything that's mentioned, is there not an argument for concentrating on revenue etc, rather than going 'big'?
    What I mean is the tendency to focus on total numbers of users, rather than looking at the amount of revenue generated by a smaller number who actually care, and increasing that just as proactively?
  • Ben Yoskovitz · 1 year ago
    @Dan: Going "big" can still mean generating revenue. I've argued in the past (as have others) that focusing on revenue is becoming more and more important in these difficult economic times. So I agree with you.

    It's a question of defining "going big".

    @Alain: I agree, the EGO has a big part to play in making decisions. And CEOs are not known for having small egos!
  • Michael · 1 year ago
    Awesome stuff I'm soaking all this up. I'm relatively new so thanks for the info I've been checking around and you have awesome content.
  • Nichole · 1 year ago
    In the times of recession the proverb "survival of the fittest" applies. This is where the real test begins.
  • Tracy K · 1 year ago
    Gosh... I couldn't imagine waiting this recession out in order to get out of the hole! Yikes!
  • Rick · 1 year ago
    As long as you don't have a lot of recurring expenses, there is no reason why a small company should die. Even if you are not making money, if you are not spending any either, you can just wait until things pick up and in the mean time use free marketing techniques. That's what I do, even when I am making money.
  • Christina · 1 year ago
    I think one should also consider the size and type of the business intended. These 2 factors would greatly influence a businesses' success during rough economic times. Some business plans have higher start up costs than others, some businesses' have a higher profit to expense ratio. There are so many different factors that one needs to consider, it would be hard to make a blanket statement about ALL start up businesses.
  • Brandon Schlichter · 1 year ago
    I totally agree, the economy of everything has changed.

    I am in real estate, and we've been experiencing a very large dropout of real estate agents in the industry. Many people try to build a business with shallow roots, and when things get dry , they die.
  • Mark · 12 months ago
    The reality is that the day of high-overhead businesses with high rents will face a very tough time. This is when your business model is really put to the test, and I think many of the "little people" will survive ok. It is the big companies who have borrowed heavily in anticipation of expansion who will be fretting over servicing their loans who must fall. Unfortunately, they are the big "wealth creators" so it has a knock-on effect.

    Think we should all invest in space programs and start anew on Mars.
  • Eskil · 11 months ago
    Even though the business oportunities are declining I think that there also will be a decline in competition, at least as long as you can survive for a while.

    Another good point is that small businesses often have an advantage of less overhead costs and can compete through lower prices. In a declining ecomony that may get customers to turn to smaller suppliers.
  • Mike · 11 months ago
    I think the Darwin Theory somewhat applies here. But the "fit but not the fittest" can survive too, with a bit of adjustment, or rather evolution, in context to the conditions. Very informative post. Thanks a lot!
  • Matt | Small Biz Bee · 11 months ago
    If you can hang on, and survive for a while you have a good chance for success. You're right, as a new start up it is usually apparent very soon that your biz is not viable.

    Matt
  • Omar Kettani · 11 months ago
    I am against targeting a survival mode. Startup businesses are risky in any economy even if you try to play it safe. So let's be agressive. At least there is an upside and after all it might work. Otherwise it's not worth it. Better stay in your current job.
  • Jeff · 11 months ago
    Sometimes it takes times like these to "shake the tree" a little and weed out the dead leaves. When the real estate market was booming, everyone and their mother, cousin, sister and step-brother was jumping in to become a realtor. The people who didn't belong got weeded out pretty quick and the ones who survive will be poised to come out strong when things turn around.

    Same goes for a start-up. If your planning is sound and your business model solid, you should be poised for a good run.
  • Jay Robinson · 11 months ago
    yes it is becoming harder for smaller companies to even make a name for themselves
  • Ben Yoskovitz · 11 months ago
    Thanks for all the comments.

    Jeff - I think the tree is shaking mightily at this point.
  • hand2010 · 11 months ago
    Great post. Thanks for the help.
  • Alex Delarge · 10 months ago
    Oh good ol Ego,
    It is a greatest strength and our greatest weakness, strength because it gives us that charisma and drive to be entreupenuers, weakness is that things get too personal and effect our pride..
  • rolandas · 10 months ago
    In Lithuania officially recession will start soon, but already now we can feel the slowth of economy.
  • Dave · 10 months ago
    If you can hang on, and survive for a while you have a good chance for success. You’re right, as a new start up it is usually apparent very soon that your biz is not viable.
  • Curt · 9 months ago
    very important topic. i think we should always concentrate about revenue. because revenue is the heart of a business. a targeted customer is always a good source of revenue. so we should think of small rather than a big one.