Vladi is cofounder & CEO of Lightspin, empowering cloud and security teams to eliminate risks to their cloud and Kubernetes environments.
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Picture this: It’s February 2020, you’ve just launched a company and you also have a new baby at home. You’ve left a steady paycheck in favor of the adventure of entrepreneurship. You’ve done the research, understand the market need and are confident that your solution will massively improve many people's lives.
Six weeks later, the world shuts down in the throes of a global pandemic, and the future is uncertain, at best.
At the time, it would probably seem like one of the worst times in history to start a company. Now, with some distance, the pandemic might have been a great time to start a company. In fact, according to data from the U.S. Census Bureau, aspiring entrepreneurs filed paperwork to start 4.3 million businesses in 2020—a 24% jump from the previous year and the highest volume of applications since tracking began in 2004.
In my personal experience, the pandemic was a stimulant to my company's growth. It forced a level of creativity in the way founders problem-solved and approached everyday business life in several areas. We had started meeting with VCs to secure seed funding. People were more engaged and hungrier for human connection than ever before. It was easier for us to meet with individuals across the world, and I believe this was instrumental in our company securing an initial seed investment and, later, a funding round in 2021.
Building a company remotely was not easy, but the time at home certainly afforded me more time at home with my newborn. This valuable time was something I would have missed if I were traveling to and from the office or flying around the world. Additionally, having less travel and logistics to worry about was healthy for my marriage. As a couple that each has a career to focus on, being home together allowed us to transition into our new role as parents and my new role as a cofounder and CEO of a hypergrowth startup.
Now, almost three years into my entrepreneurial journey, the world looks different. The market has changed, and the workplace has evolved. Business leaders must constantly evaluate the needs of the business, employees and customers. They must constantly adjust as necessary. With the new phase of economic uncertainty causing worrying for companies around the globe, here is my advice for fellow entrepreneurs navigating the next phase of their company trajectory.
Don’t get complacent or fear a shift in direction.
One potential reason the pandemic was a good time to start a company is that it forced businesses to adapt to the changing landscape. The sudden shift to remote work and the shift in consumer behavior created a need for new products or services that did not exist before. Entrepreneurs who were able to identify and meet these needs were able to tap into a new market.
While it's crucial to embrace the necessary shifts in times of uncertainty, it's equally important to understand the challenges of doing so. While working remotely has been nice, for example, there are still many real benefits to being in-person. The Harvard Business Review found that when seeking connectedness, people said they turn to their workplace more than their neighborhood communities or religious groups—being with people in person adds to the ability to connect.
Community building then becomes even more critical, which is always true during times of uncertainty. If managing a hybrid workplace, ensure that you have open Slack channels to integrate and share with your employees and/or prospects. Find the time to answer questions directly and communicate regularly with active users.
Focus on value-add, not sales.
Now is the time for entrepreneurs to demonstrate their resilience and resourcefulness. Those of us who were able to navigate the challenges presented by the pandemic and find ways to continue operating gained valuable experience and built a strong foundation. The current economic climate necessitates a shift in focus on customer acquisition and retention.
Focus on establishing a giving-first mindset and creating value. People are searching for better content, better advice, better webinars. Sales teams should focus on more than the sale; instead, they need to think about the value your company creates. Once that community is developed, and credibility is established, the prospect should understand the value you bring.
Don’t start a startup to get rich.
When asked to give advice to other potential startup CEOs, I always first ask why they want to start a company. It’s not for the faint of heart, and it’s not a get-rich-quick scheme. About one in five small businesses fail within a year, and only nearly half make it to their fifth year.
Whether it's a recession or a pandemic—it doesn't matter. My advice for fellow entrepreneurs is that when you believe in what you’re doing, you have the right team (from VCs to executives to team members), you must focus on execution, and everything else is just background noise. Keep a healthy outlook on the macro, but focus and lead your team to execute your vision.
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