Don’t contribute to a self-fulfilling prophecy

The outlook from industry pundits across VC, PE, and public markets seems overwhelmingly bearish. 

I get it; many of the typical leading indicators are in bear country.  

Recent reports show inflation in the US at a high not seen since the 1980s. The housing market, the usual bellwether of the broader economy, is facing extraordinary challenges with increasing interest rates, supply chain issues, and an inexplicable labour shortage. 

The dramatic decline of the stock market from historic highs during the pandemic is impossible to ignore. 

The unfortunate part of this whole thing is that the more we react like a pack to the prognostications of industry experts, the more likely the worst-case scenario will manifest itself.  

The best approach is not to ignore the warnings but to evaluate your situation and make the relevant decisions for your business.

An April Forbes article highlights a Gartner Forecast suggesting that technology spending in 2022 will grow by 4%. This continued growth despite an incredible 9.8% spike in tech spending in 2021. 

This data point alone doesn’t mitigate concerns over the broader macro-economic situation, but it’s one of many data points available that demonstrates it’s not all doom and gloom.  

Combine these data points with pragmatism, and you quickly conclude that you can not only survive this moment but thrive. If your product or service solves a real pain point, bonus if you can frame it as a tonic for the current situation, there are buyers out there.  

Whether or not to lay off or reduce spending should be informed by the current economic situation and predictions of how it will play out over the next few quarters but not exclusively.  

This moment in time might be your moment to seize; a quick google search will bring up many examples of companies who came out bigger and better from an “economic crisis” or “recession.”  

Don’t contribute to a self-fulfilling prophecy, rather set your own course and buck the trend!