How To Be Recession Ready

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Harlem-Capital-How-To-Be-Recession-Ready-June-2022-External

We presented this deck to our founders and wanted to also share with other founders. The market is changing rapidly and it’s important that founders are adapting to be prepared.

Some Highlights:
1/ Overview
– Recessions are apart of the business cycle
– Don’t underestimate the qualitative skills as a leader
– No one knows what will happen

2/ What Are Others Saying?
– The greats all go through this
– You will be surprised by what you can do with your back against the wall
– The one most responsive to change will survive

3/ It Is Important To Extend Runway to 18-24 Months
– You should raise a bridge or do lay offs to extend runway
– CASH IS KING
– Look at your cash out and see where you will be 6+ months from there

Cashflow analysis -> https://lnkd.in/gZh2t36f

4/ Things To Consider If You Have To Fundraise
– You should be extremely transparent with your investors
– Raise bridge rounds early
– Expect rounds to be smaller, valuations lower, dilution heavier, more diligence, longer processes and higher KPI hurdles

5/ Things To Consider If Doing Lay Offs
– Cutting burn means lay offs as 80%+ of your cost is headcount
– These are humans, remember that and be human
– The prep is important as most of you have never done lay offs
– You still have employees, ensure they have confidence in you

6/ Questions to Ask Yourself
– It is important to be reflective in challenging times
– Take the time to push your assumptions on the business, some have certainly changed
– You are a person before a founder, take time to ask yourself questions

Remember that you are not alone in this experience.

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