The Great Reset for Startupland #BusinessTips - The Entrepreneurial Way with A.I.


Saturday, August 22, 2020

The Great Reset for Startupland #BusinessTips

Last week I was talking to an entrepreneur and he shared the latest progress for his startup. The story was a familiar one in the time of pandemic:

  • Growth slows, sales cycles lengthen, uncertainty clouds decisions
  • Layoffs to conserve cash and reflect new growth expectations
  • Recognition that metrics needed to raise more money on ideal terms won’t be met
  • Reset business expectations for measured growth with a focus on getting to profitability/breakeven
  • Realize profitability/breakeven relieves an artificial pressure, providing a newfound freedom

This is the great reset for startupland.

Most startups were negatively impacted by the pandemic. A small percentage were positively impacted. All expectations were changed.

Look for this reset to play out in a number of ways:

  • Revenue growth and profit margins, also known as the Rule of 40, will be one of the most important metrics
  • Hiring, going forward, will be more measured. Entrepreneurs will start paying greater attention to revenue per employee.
  • Work from anywhere, and the corresponding hire from anywhere, will change huge numbers of companies forever, in a way that has a positive benefit for the world.
  • Costs, especially office space, will be more scrutinized, resulting in leaner, more efficient organizations.
  • Investor expectations are lowered and more attention will be paid to existing portfolio companies.

We’re living through the great reset for startupland and the impact will be felt for years.


David Cummings, Khareem Sudlow