Ravi Gupta is a partner at Sequoia and former COO/CFO at Instacart. His blog post The Real Competition is the Water is worth a read, especially in the for startups difficult environment of 2023.
What matters is moving your company towards excellence. What does that mean? Look at your 2023 plan and be honest with yourself about whether your revenue growth justifies your cost base. If it doesn’t, either make the hard decision on costs now or find the big bet on product that will give you a chance to fundamentally alter your growth trajectory in 2024 and beyond. Most companies are treating 2023 as a mulligan year with hopes that the market improves in 2024 and brings growth back. None of us know whether it’s going to be easier or harder to grow in 2024. All we know is that hoping that it’s easier is not a great strategy.Ravi Gupta