What the entrepreneur before the crisis

Disturbing news from the stock market and disappointing economists' forecasts come almost every day. The Village learned as an entrepreneur to prepare for hard times

Move all processes in manual mode

It manages to overcome the crisis to those who quickly adapt to the changing situation on a daily basis, correctly responding to it. So even if you just have the money for a year of work, the situation requires an immediate review of all well-established business processes.

During the 2008 crisis, a competitor of one of our portfolio companies strongly "obzhёgsya" when sales people are happy to ship the goods "suddenly" has increased its customer demand. These were the last orders of the customers: they scored items, and then stopped paying. Subsequently, the competitor regretted that at the time have not studied every custom deal independently, not revised the conditions and everything left to the discretion of the sales staff. Then the competitor did not want to ship goods under implementation, even normal feeling itself firm, and it has allowed our portfolio company QUMO stand on shelves of major retailers.

During the crisis, many companies are clamped at all and try to wait it out. This leads to a drop in prices for different services, such as banner ads. For those who kept afloat, it is an opportunity to discuss the terms of cooperation and re-start buying cheaper traffic. Discuss with the new terms of cooperation. Review the conditions of work with contractors. Do not ignore anything. All that work on the machine, and now make only "manual" mode.

Discuss the situation with the staff

Most employees want certainty. Open and honest discussion on the recognition that the increase of salaries and bonuses will not give people a clear understanding of the possible effects of external factors on the company in general and specifically to them. If you let the situation take its course, people will think out - and obviously not in your favor. Many will try to get out of a stressful situation by changing jobs, even going to the worst, but more understandable terms.

Properly structured communication and feedback is of great importance. But all attempts to resolve the situation simply an afterthought or notification ends badly. Everyone remembers the famous message from the CEO producer of "air" display Displair: he recorded a video message to employees with the news about the need to close one of the company's offices, and did not talk to people in person. Nedoinformirovannye workers caused a wave of publications in the media, and then scandals scared off investors from the company.

Talk with investors and creditors

It is a mistake to believe that the investor itself is not small, and understands everything. Slow development of the company due to the troubled economic situation need to discuss right now. Otherwise, you can not avoid accusations that you "have sacrificed growth for the sake of security." Investors bear the bad news better immediately. And it's better with a concrete plan to solve problems. If the involved money you have less than a year of normal operation, you should urgently negotiate with investors that are going to focus on something one (product fiche, values) and cease to invest in attracting new customers, which is impossible to monetize.

If your company has a loan from a bank, you too may face difficulties. Banks raise rates on loans and factoring, as well as trying to cut down the size of the credit line, which is always very inappropriate. Remember one thing: Even if you previously could not afford carelessness in dealing with the bank or the loan repayment schedule, and now all this can cause serious renegotiation of cooperation, and in case of delay on the loan - the process for the disposal of the business debts.

Monetize project

The difference between the startup of a new business that just a new business can earn from the first days of existence, bringing the founders and investors in a clear date pass break-even point, having at its core has a standard and proven business model. Startups - these are projects that are in search of a business model. In the early stages of development, they accumulate user base, burning investors' money in the hope of future monetization.

I never recommend to monetize the project ahead of time, before dialing a critical mass of users. After all, the speaker and the monetization of project development are interdependent. Monetizing the project, you slow down the growth of the user base. But in a crisis situation monetization - the only way to hold the next round of investment. Also confirmed by the business model can improve the mood of current investors - they will be ready to support the project and beyond.

Find out what's happening in the market

The crisis is better to be with capital that you can spend on profitable investments. Transactions occur at much lower estimates, the benefit of the situation and the general mental attitude allow. The crisis will end, and with it the opportunity to buy shares in interesting projects at low prices.