“Antifragility is past resilience or robustness. The resilient resists shocks and stays the identical; the antifragile will get higher.”
A buddy advisable rereading Nassim Taleb’s Antifragile given the macroeconomic backdrop, which I did this weekend. How does a software program firm grow to be stronger all through this volatility?
A method is to make sure a wholesome buyer base.
Cyclical corporations growth when the financial system thrives, however endure throughout recessions. They’re the hare of Aesop’s footrace. Non-cyclicals are the tortoises advancing inch-by-inch.
Within the final 12 months, tortoises have outpaced hares. The blue strains present non-cyclical sector efficiency & the purple strains are cyclical sectors.
I’ve watched some founders shift their gross sales focus to non-cyclical consumers because of this. Churn, slower gross sales processes, & pipeline provide shocks are extra possible at present from cyclical prospects than previously.
Startups grow to be stronger by downturns, those that enhance with stress, evolve to dominate. Darwinism at its most interesting. Variations in go-to-market technique like this are vital strategic inquiries to ask & reply.