How can startups survive the recession scenario?

[shukla7789]

=Mass layoffs at several startups have brought the debate about business sustainability to the fore.

The low interest rate scenario in the global economy has persisted worldwide since mid-2009, following the subprime crisis in the US. During the Covid pandemic, the extremely low interest rate scenario attempted to avoid an economic catastrophe and subsidize the recovery of the economy.

The technology market was flooded with money, saw investment cycles reach unprecedented levels, multiplying the number of unicorns in the market.

This excess liquidity also created artificial scenarios: self employed database salaries and business models whose sustainability is unlikely. Many people bet on the “winner takes all” approach, which requires a lot of investment in media to acquire customers and operational losses to dominate the market.

In a scenario of high inflation and recession, the tide went out and showed that many people were naked.

What to do?
With the need to reduce cash burn and acquire customers on a more sustainable basis, classic strategies are once again gaining visibility to generate growth at lower costs with a more reasonable breakeven.

What will once again attract the attention of marketing managers:

1. SEO will gain even more momentum. Dominating organic results on Google has been a classic growth strategy since Amazon in the early 2000s. It's no wonder it's the largest e-commerce company in the world.

2. Growth Marketing: the area has left behind the nickname “hacking” to become a general practice in the Marketing area, focusing on optimizing efforts and measuring what works and what does not generate results.

3. Inbound Marketing : Generating and engaging with leads organically returns to the forefront when media costs become an issue. To reduce CAC, Inbound will once again receive more attention.

4. CRO (Conversion Rate Optimization): conversion optimization and A/B testing acceleration reigns in a scenario where you have to squeeze the orange until you get all the juice!