Hard Times Create Strong Companies

D.H.H. writes:

Good times create weak companies.
Weak companies create hard times.
Hard times create strong companies.

As a founder, owner, or executive, your mission, should you choose to accept it, is to let these hard times forge a strong company. And to do so without complaining, without blaming. But by taking the steps necessary to meet the challenge. To embrace this crisis and improve the long-term prospects and habits of the business.

I think he's right, particularly about two things:

  1. The party is over. I can feel it, I hear it from our investors, other founders, and I can see it now for myself in our results.
  2. Tech companies born in the last decade haven't had to fight for growth. Some haven't even had to measure it and all haven't had to prove anything close to profitability. Including us.

This part relates to my earlier post on the topic of valuing what's great about being small:

It's another thing entirely, if you're merely mimicking the habits of such an obese monopoly, but you sell, say, enterprise business software with no viral vector or intrinsic moat. Suddenly anything resembling Google's largess will look ridiculous in the harsh light of the present economic conditions. Suddenly those hundreds of millions of dollars you've raised and burned will be judged as a capital vice. Suddenly the party is over.

It's going to be a rough road ahead, but I will endure it. We will come out stronger. I will meet my fate with a smile.