The venture community is buzzing with talk about bubbles. Even if we are not on the verge of a 2000-style collapse, multiple signs of contraction in the venture space make it clear that entrepreneurs need to start planning their response. Based on past downturns, it is impossible to overstate the importance of having cash in the bank and a flexible cost structure to weather the storm.
This article highlights what ventures can do to increase their ability to survive a slowdown. Many of these recommendations are appropriate for any market condition, but some will impact growth. As a result, entrepreneurs will have to reach their own conclusions about the likelihood, timing and severity of a downturn before determining their response.
