Product Acceleration is critical for startups’ survival during COVID crisis

At Product10x, we fully understand the ramifications of Covid-19 on startups looking to fundraise, launch, or scale during these tough times. Having talked to several startups and attending VC events, we have compiled some guidance for you to think through.

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At Product10x, we fully understand the ramifications of Covid-19 on startups looking to fundraise, launch, or scale during these tough times. Having talked to several startups and attending VC events, we have compiled some guidance for you to think through. 

Operations

  • iconPlan for cash runway for 12-24 months
  • icon50-60% haircut is recommended on your operating expenses. 
  • iconThrow out your 2020 forecast; Re-do Scenario planning and contingency plan
  • iconDon’t dismantle too much, do it smartly.

Product/Sales/Customer Success

  • iconRedo your product roadmaps now!
  • iconStay close to your customer - retention is critical at this time. 
  • iconMake use of cheaper investments that may become available on R&D and other areas. Develop Must-Have features and throwout Good-to-have and Nice-to-have features. 
  • iconProduct market fit is going to be super important.

Marketing

  • iconGTM strategy will most likely change, marketing events are going to change forever. 
  • iconDigital marketing will need significant changes due to cost pressures on Marketing spend and will change for the better, create your plans now.
  • iconExplore partnerships with an intent - don't spend many cycles on partnerships unless it directly affects your company or customer. 

Fundraising

  • iconFundraising will be tighter but is not entirely out of question.
  • iconMake a Covid-19 impact deck for your business or your customer.
  • iconDon’t back off from fundraising - But be cautious about your valuation.  
  • iconBe opportunistic about M&A and partnerships
  • iconFind a co-investor to speed up to go to market and channel strategies. 
  • iconRun scenario analysis for revenue models in a no IPO window for the next 18 months and evaluate your cost structure 

Industry 

  • iconEdtech, Healthcare, and Collaboration/Productivity are still very strong - if your startup is in this area, you will emerge stronger than ever. 
  • iconThe industry expects 60% lower total capital available in 2020
  • iconWelcome to the Zoom (remote working) economy and embrace it 
  • iconProtect your installed base, pivot to different industries.. and switch from sales to customer success. 

Here is our strategic view for every startup in these times...  

  • iconProduct strategy pivots are necessary to capitalize on market opportunities when the Covid-19 situation ends.
  • iconGo to market plans for startups that require careful consideration, leverage experts in the industry who have gone through such downturns. 
  • iconPricing plans require creative adjustments to incentivize for the short term with the ability to scale back up for the long term
  • iconLook for opportunities in M&A to drive inorganic growth to be ready for the uptick. 
  • iconDrive product roadmap and optimization relentlessly to prioritize and maximize the money on hand.

In summary, economic downturns lend themselves to times when great companies are born in the Cloud, Social, Mobile, IoT, AI, and Visualization technologies. 

If you are a startup, we would love to hear from you on how you are navigating these tough times or need help with Product Acceleration. Send us a message at hello@product10x.com