When it comes to economic downturns, I’ve been around the block a few times. Railsr, formerly Railsbank, is my third successful startup and with each of my companies, I have faced a downturn including the dot.com bubble, the crash of 2008 and now a post-pandemic crisis.
So, from what’s often a painful experience, these are my top tips for founders and their leadership teams on how to survive the current downturn and period of economic uncertainty.
Cash burn
Number one, stay super focused on cash burn. Make sure you have 12 to 18 months of cash in the bank. Cash burn has to be the number one priority, as companies with a short runway will have very few options when the crunch comes....