(7 votes, average: 4.57 out of 5)
Loading ...I might be calling this a little early, but in times such as these, its better to be early than dead. Now that the Sensex is 30% (Nasdaq 25%) off recent peaks, and US economy heading downwards, here are some lessons from the last time we went through this:
- Cash is king - raise money if you can; dont vacillate on valuations
- Put your blinkers on, and build the business - avoid distractions
- Focus on the customer - build what you can sell in near term
- Building brands can get cheaper - but will still take cash
- Enterprise sales (software or services)? Count on longer sales cycles
- Beware of old receivables - a lot will evaporate
If we do get to a full bust, I will come back with some more. Remember, the great companies of today were built on surviving the last bust. Here’s your chance.
Alok ,
Thanks for the guidelines. Do you suggest companies looking for funding for branding and business development now rework and look at acquisitions in US/Europe? I had couple of interesting M&A proposals over the last few weeks in my Inbox from few investment banks in US.
Any tips from anyone?
I still believe that if your story is strong and is India centric, you need not be worried too much on the downtrend. Yes, certainly their will be an impact especially in raising cash but i guess the if we survive through the tough times by bootstrapping well and identify unique models to stay afloat… then i guess you will come out a winner