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Friday, July 1, 2022

Michael Arrington On What Works In The Current Economic Climate

I acknowledge that our postings have a been a bit video heavy lately and continue to be so this week, but still wanted to give you a few, what I think is very useful, soundbites from Michael Arrington, editor and founder of TechCrunch. Despite the on-going general post-LeWeb brouhaha in the web, this is worth a watch. Andrea Vascellari, CEO of iTive.net consultancy did a good job asking Arrington where he sees the startups given the current economic climate.

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Here’s the key take aways from the video:

  • In a tough economic climate winners find an aggressive way to expand without spending a lof of money by
    • Reducing head count
    • Paying lower salaries now that they are collectively down
    • Paying less for everything = lower expenses overall
    • Acquiring competitors pennies for dollar when they are about to belly up
  • A lot of startups make headcount adjustments already, which is probably a smart move (Think Fruugo and Blyk)
  • Those startups that have better execution end up being winners (this is something that I believe always bares repeating even though it’s a no-brainer)
  • Remember that this downturn is different! Those who act as they acted in the previous one probably end up being one of the losers.
  • You have to be quick on your feet and agile
  • Those who focus on technical market analysis on what used to work tend to too poorly in the new climate: You should look at the playing field as a new one and compete given that

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