Leading a company is marked by constant change. As a leader, you have an opportunity to create clarity and alignment through purposeful and consistent communication.
During economic downturns, every company faces a different situation, and what’s right for yours could depend on stage, funding history, cash balance, and space. What to do falls into three buckets: fundraising, operational focus, and reducing burn rate.
Winners in the new world—as well as smaller startups or those leveraging existing relationships—will still close deals during this period. But be wary of investors who use this environment to propose term sheets full of red flags.
This post explains why sometimes you should embrace layoffs as a difficult but necessary step, how you should implement a layoff, and what you can do to rebuild morale down the road.