5 ways startups can survive a recession

As a startup founder, you're a resilient and adaptable creature who knows how to build a product, sell to customers, schmooze investors, and attract talent. Your entrepreneurial talents are now put to the test during this downturn. As we are now officially in a bear market with stocks plummeting, the recession is official.

But that doesn't mean things are all doom and gloom - far from it. Now is the time that separates those who can better evolve, and in crisis lies opportunity - as they say. If you play your cards right, the big bet here is that your startup today is the unicorn of tomorrow. (Remember, the likes of Uber and Airbnb were born from the last recession!)

Here are five top tips for startups to weather the storm:

1. Extend your cash runway - have enough money saved up so that you can survive the downturn, if necessary. Make sure your operations are lean and efficient, as this will help to conserve resources.

2. Focus on sales and customer relationships - this is the best use of your time as the CEO right now. Focus on talking to clients and making sales, when it matters most. This is also more cost-effective than trying to acquire new customers, as a reminder (which chan cost anywhere between 5 and 8 times more!) Showing existing customers that you appreciate them can lead to increased loyalty and repeat business - just what you need at a time like this.

3. Spend time with your best employees - it is important to build relationships with your top performers so that they feel valued and supported during difficult times. This can help to increase retention and morale, which can make all the difference.

4. Keep in close contact with your venture investors - let them know how your startup is doing, and stay informed of their plans during the recession. This will help you to understand what sort of support they are willing and able to give.

5. Reinforce your startup's unique culture - having a clear and identifiable culture is key in making sure that everyone is working together towards the same goal. This can create a sense of solidarity that will motivate your team through any tough times ahead.

Although the startup world is no stranger to recessions, this current one seems to be hitting harder than usual. Despite this, there are still opportunities for those who know where to look. Keep in mind that it will take hard work and resilience, but with a bit of luck your startup could emerge as a unicorn stronger than ever...

Bloom is an award-winning marketing agency specialised in brand performance, to help businesses achieve the next level in their growth journey. With work featured in the likes of Forbes, The Independent, and Sifted, we are proud to have delivered tangible results to our high-growth clients.