Enterprise Weekly #510: Advice on Navigating Uncertainty from our CEO in Residence
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Last week we discussed how tariffs are sending shockwaves through the market and its potential impact to software budgets if uncertainty turns into calamity.
To help founders navigate this volatility, we’re sharing advice from our CEO in Residence, David Politis (co-founder at BetterCloud, acq. by Vista Equity Partners). Throughout his career, David led companies through 3 macroeconomic downturns: the financial crisis, COVID, and the end of ZIRP.
Here’s his advice to founders on how to hope for the best, but prepare for the worst.
First, it’s important to know that this is not your fault. It is out of your control. As founders, you’ve done nothing to cause what may or may not be coming. It will feel lonely, but you’re not alone.
The mistake I’ve made in the past, and I’ve seen many others make is that we say, “Let’s wait and see, it can’t be that bad, right?” and we keep saying that until we’re face to face with some very hard facts and lose-lose decisions.
This is wartime.
It is exhausting, I know. But no one is coming to save you. Every customer is/will be dealing with their own fire. The hard reality is that this moment is on you. Get yourself in the headspace to lead through it.
It will hit every part of your business.
New sales will slow first. Sales cycles will slow down or stop all together. But do not let silence fool you. Churn is coming too, it just lags. Each function needs to prepare for impact now.
Make the plans now.
Build three: (1) Cut to profitability. (2) Extend runway by at least 12 months. (3) Trim fat without damaging the core. You may never use the plans. But if you do, you will be glad they are ready. And if you need to cut, go deeper than you think you need to and do it once. Multiple rounds break teams. I have made that mistake.
Support your customers.
They are feeling the same pressure you are. Help them make the case to their CFO. Offer flexible terms. Cover implementation. Do whatever you can to help them buy/keep you.
Lean into ROI.
If your product saves money, now is your time. Show it. Prove it. Make it undeniable.
Renegotiate everything.
Every contract, every vendor. Assume it is all on the table. Do not wait. Do not be shy.
Communicate with your team (more than you usually do).
Your team is watching. Silence breeds fear. Transparency builds trust. You do not need to pretend to have all the answers. But you do need to be honest. And do not make promises you cannot keep.
Talk to your investors.
Tell them your plans. Ask what they are seeing. Let them know where you may need help. The earlier you know what support is realistic, the better.
Secure cash now.
If you can draw down venture debt or raise a bit of money, do it. Even if you do not need it yet.
And remember, it will pass.
The only question is when. Your goal is to make sure your company is around when it does. Sometimes the reward is survival. Sometimes it is efficiency. Sometimes it is winning big while everyone else is distracted.
These are the wartime moments of being a founder, but we believe in your ability to lead through the storm and come out stronger on the other side. You've got this!
🗓️ Join more Work-Bench events:
April 22nd: Overcoming Challenges in Enterprise AI Adoption hosted by BigEye. Come see Priyanka speak with AI & Data leaders! (NYC)
April 28th: Aegis of Tomorrow: An AI & Security Summit hosted by DryRun Security for AI Security researchers, practitioners, and engineers! (SF)
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