Needless today, it’s not business as usual these days.
In fact, shutting down the economy for a pandemic has never happened, retired serial entrepreneur and educator Steve Blank writes in a blog post first published on his eponymous website.
“Millions of jobs may be lost in the next few months, as entire industries get devastated, something not seen since the Great Depression of 1929-39. I hope that I’m very wrong, but the impact of this virus social and economic effects are likely to be profound, and will change how we shop, travel and work for years.”
However, it’s not all doom and gloom.
He offers up a strategy for operating during these uncertain times. Among the first acts (after taking care of family) is asking these questions, he says:
- What’s my Burn Rate and Runway?
- What does your new business model look like?
- Is this a three-month, one-year or a three-year problem?
- What will my investors do?
“Unfortunately, it’s no longer a normal market,” he writes. “All your assumptions about customers, sales cycle and most importantly, revenue, burn rate and runway are no longer true.
“If you’re a startup, you’ve likely calculated your runway to last until you raise your next round of funding. Assuming there was going to be a next round. That may be no longer true.”
To read the full post, go here.