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Uzone.id — The tech industry is like the weather—sometimes it’s sunny with booming growth, and other times it hits a cold phase known as a “tech winter”. Tech winter means things have gone from busy and exciting to a slower and careful phase.
During this era, startups who used to be everywhere and investors who used to throw their money that easily are changing. Money is not flowing as freely as it was, funding goes dry up, competition heats up, and the feeling of uncertainty is getting higher.
With the right mindset, perfect strategies and moves, startups can not only survive but come out stronger. Here’s how to keep your startup warm to get through the tech winter era.
First, Strengthen Your Squad
Your team is your greatest asset. Keeping your best employees is super important because losing key people can slow you and your company down.
Pay them well to make them more loyal. Money is everything but sometimes they need other things that could reach their work-life-balance goal. Things like flexible work hours or chances to grow and learn can sometimes be just as valuable, helping keep your team happy, loyal and motivated.
It’s all about the money
During the tech winter era, saving money is top priority. Nearly 70 percent of startups failed because they ran out of money, CB Insights 2023 reported.
So, it’s time to cut your spending. I know it’s hard but it’s not impossible. How to do it? First thing first, cut unnecessary expenses in your company. Think twice about what your company really needs, do you really need that fancy office or extra software? Next step, extend your runway—which means making your money last longer.
How to do it? Slow down your growth plans. Also, do not forget to focus on profitability.
Small profits are better than burning your cash when the market is cold. Growth is great, but in a tough market, revenue is everything.
Pivot like a pro
In a changing market, flexibility is key. If your business model isn’t working, don’t be afraid to rethink things and pivot. Keep an eye on the market, do research, and start looking for a chance. Are there new opportunities or gaps you can fill? Stay flexible and be ready to change fast.
Just look at Slack—it started as a failed gaming company but switched gears and became the workplace messaging app everyone uses now.
Another good idea is to cross-train your team and build a strong company culture. The more skills they have, the easier it is to face new challenges together.
Remember, the companies that survive tough, cold and unstable times are the ones that can shift direction quickly.
Do not ignore your loyal customer
In tough times, keeping the customers you already have is just as important as gaining new ones. It’s far cheaper to retain customers than acquire new ones—5 times cheaper, according to research by Invesp.
And how to do this? You should focus on customer satisfaction. Keep them happy by listening to their feedback and offer programs that help them get the most value from your products or services.
By building loyalty and trust, you can reduce customer turnover and maintain steady revenue, even when the market is tough.
Team up with potential strategic partners
Doing collaboration with a potential partner can be a game changer during this tech winter. By teaming up with other companies, you can share resources, cut costs, and reach a wider audience.
How to do it? Look for businesses that align with your goals—collaboration can be powerful.
You should also use your business relationship to get their supports. You can tap into industry support through incubators, accelerators, or networks that offer mentorship and sometimes funding. These communities can help you find creative ways to handle challenging periods like tech winter.
Be smart about funding
Funding gets tight during a tech winter, so you need to be smart about where you get it. If venture capital is harder to come by, it’s time for you to be like Dora the Explorer, explore other options like crowdfunding, government grants, or debt financing.
Just be cautious when raising equity—make sure you don’t give up too much control in the process.
Entrepreneur Mark Cuban says, “cash is available if you have a sound business.”
So, as a founder and business person, be selective with investors. Don’t just take the first offer—look for those who align with your long-term vision and can offer strategic advice, not just money.
Stay Positive and Stay Resilient
Keeping a positive mindset is also an important key during this unstable condition. A wise man said, don’t wait for the economy to get better. Focus on what you can control.
Optimism wakes innovation up. Use this winter time to learn from your mistakes, improve your processes, and build something even stronger.
Do not forget to use your business relationship by seeking support from other entrepreneurs or mentors so they can offer valuable advice and encouragement when things get tough.
Surviving a tech winter isn’t easy. It’s all about making smart decisions, staying flexible, and focusing on what really matters—your customers, your team, and your revenue. Remember, the companies that survive tough times are the ones that can shift direction quickly.
