Product & Startup Builder

How should your company deal with the Coronavirus?

Added on by Chris Saad.

Read this important artcile from Seqoia…

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Coronavirus: The Black Swan of 2020

Dear Founders & CEOs, Coronavirus is the black swan of 2020. Some of you (and some of us) have already been personally impacted by the virus. We know the stress you are under and are here to help. With lives at risk, we hope that conditions improve as quickly as possible. In the interim, we should brace ourselves for turbulence and have a prepared mindset for the scenarios that may play out. Read the article.


My thoughts on the article above and the Coronavirus generally…

While the entire letter I linked above is important to read and act on, these are the most interesting parts of the letter to me...

"Could you turn a challenging situation into an opportunity to set yourself up for enduring success? Many of the most iconic companies were forged and shaped during difficult times. We partnered with Cisco shortly after Black Monday in 1987. Google and PayPal soldiered through the aftermath of the dot-com bust. More recently, Airbnb, Square, and Stripe were founded in the midst of the Global Financial Crisis. Constraints focus the mind and provide fertile ground for creativity."
...
"Having weathered every business downturn for nearly fifty years, we’ve learned an important lesson — nobody ever regrets making fast and decisive adjustments to changing circumstances. In downturns, revenue and cash levels always fall faster than expenses. In some ways, business mirrors biology. As Darwin surmised, those who survive “are not the strongest or the most intelligent, but the most adaptable to change.”"

I couldn't agree more with the statements I've highlighted above.

In particular, this one:

"Constraints focus the mind and provide fertile ground for creativity."

During a happy status-quo, it's easy to power through in rather ineffective or inefficient ways without really feeling the consequences because a rising tide floats all boats.

During times of distress, however, you need to focus, spend every dollar wisely and make every action count.

Now is the time to remove dead weight from your team, drop ineffective workstreams, and insist on a higher level of execution quality and speed from your org.

Those that navigate through this period will come out stronger than their competitors and in a position to win the market.