With the recent downturn on public stock markets due to COVID-19, a recession or depression is almost inevitable. It’s likely we see mass failures across retail, travel, entertainment, and other industry sectors. The spillover from coronavirus disease and the following shelter-in-place can have drastic consequences in the startup world. Small brick and mortar businesses that were shuttered due to shelter-in-place rules will no longer are spending money on Facebook or Yelp to promote their business nor will they maintain their SaaS subscriptions. Large enterprises will pull back spending in sales and marketing in anticipation of a recession. This could cause reduction in seat counts or usage for SaaS contract.s Similarly, sales teams may find CFOs and financial controllers are blocking many more purchases than before forcing deals to be stuck in procurement or legal review.
The good news is that many developer platforms and APIs have tricks that make them more resilient to a recession. However, if you’re not doing these items today, now is the time to reconsider to ensure the longevity of your product and/pr company.
