Startups post 2022

Amr Omara
7 replies
After Covid and an eventful 2022, startups shifted gears from the norm of rapid growth on behalf of profitability, to profitability all the way and cutting costs specially that raising funds isn’t as easy as it used to be. Almost 2 years have passed and there’s the dilemma of going back to massive topline growth like old days on behalf of profitability, or growing profitability with slow growth in topline. What is the right approach from your POV?

Replies

André J
Best time to start is now. If you can. Because there is less competition because no-one can afford to start something at the moment.
Amr Omara
@sentry_co well opening a business in tough times roughens you up and makes you capable to face challenges easier than easier times.
Anthony Sellitto
Unless interest rates go down there will be no low cost borrowing money to grow rapidly.
Amr Omara
@ax3com, so you’d go with the profitability path in our current times? Also there’s a lot of projections that interest rates are going to drop by end of 2024, do you think so as well?
Anthony Sellitto
@amr_omara so really 2025.. and drop by how much and to what 5% when pre2022 was less than 3%-0.5%... Not the same we are back to 1994 rates. Free money to borrow to pay employee salaries is going to be gone for some time... Why the former company I used to work for had 4 rounds of layoffs no runway.
Amr Omara
@ax3com totally agree with you, I believe 2022 was a wake up call to focus on creating profitable business rather solely focusing on exits through acquisitions mainly which is again a huge gamble seeing how many startups closed in the past years