1. | Focusing on unit economics and operating leverage: In order to effectively navigate economic downturns, startups need to recalibrate their unit economics and closely monitor operating leverage ratios, for financial sustainability. |
2. | Streamlining revenue streams and business models: Startups need to focus on cost-effective innovations to yield better returns and hedge against increased demand-side risks. |
3. | Prioritizing funding runway: Prior to fundraising, startups need to carefully assess their runway to ensure they are able to maintain cash flows for organic growth, during difficult times. |
4. | Plan for new and unforeseen risks: Realistic and comprehensive risk assessment for the industry, market, and product, can help startups stay afloat of shocks as the funding landscape undergoes shifts. |
5. | Focus on scalability: Startups can weather the difficult times and attract funding by prioritizing attainable business goals and future rounds of financing, as well as planning for smooth diligence and exit plans for investors. |
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