What To Do When Cash-flow Shifts
As a startup when things are going great, you can afford to invest in (well, almost) everything.
However, when the cash starts getting thinner or you are in a super-competitive market, then the real strategies start to come out. How do I spend my limited resources in the best way?
What would I think about in the situation where you can't miss?
What are your corporate goals, and what do the owners want? If the owners are committed to staying independent, it leads to a different path and attitude than if the goal is to sell the business in the next 4-5 years.
"Who are our people?" In particular, who can we realistically sell to that we offer a whole solution to? It needs to be narrow and focused.
What are the long-term market trends that few are noticing? When the chips are down, you need to bet on trends. In particular, ones that your big incumbents may have overlooked.
What do you want to be known for versus your competition? If you can't position yourself and all your competitors in 2-3 words in a way that matters to your market, you have lost before you even pitch.
From there, the big thing is having the discipline to stick to your strategy, and writing out your assumptions so that you know what you are actually testing if you need to change course.
