“Antifragility is past resilience or robustness. The resilient resists shocks and stays the identical; the antifragile will get higher.”
A pal beneficial rereading Nassim Taleb’s Antifragile given the macroeconomic backdrop, which I did this weekend. How does a software program firm turn out to be stronger all through this volatility?
A technique is to make sure a wholesome buyer base.
Cyclical firms growth when the financial system thrives, however undergo 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 traces present non-cyclical sector efficiency & the crimson traces are cyclical sectors.
I’ve watched some founders shift their gross sales focus to non-cyclical patrons for that reason. Churn, slower gross sales processes, & pipeline provide shocks are extra probably right this moment from cyclical prospects than previously.
Startups turn out to be stronger by way of downturns, those that enhance with stress, evolve to dominate. Darwinism at its best. Diversifications in go-to-market technique like this are vital strategic inquiries to ask & reply.
