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.
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
