Venture funds are: clear: given the uncertainty of the coming years as the Fed wants to wind down its decades-long monetary policyis the mandate for CEOs to:
- Cut burn.
- Slow growth.
- Careful management of profitability.
This is a tough pill to swallow for founders who planned to accelerate growth this year. Open Twitter and you’ll find a cacophony of founders, investors, and advisors offering advice on what to do next: downsize your product offerings; freeze all hires; think of mass layoffs.
The fact is that you can indeed reduce combustion and become profitable, while still failing to grow. In fact, the winners of this downturn will continue like this.
To manage their massive levels of risk, large companies must freeze hiring. If you are an entrepreneur, this is good news for you.
So what does that look like?
Fractional hiring is a cheat code for growth
We have been operating as a bootstrap company for almost a decade, so we are familiar with forecasting budgets around very conservative scenarios and adjusting within 30 or 90 day windows. This has enabled us to not only remain profitable, but also be agile. Faced with economic chaos in March 2020, we maintained our pace of growth by rapidly adjusting budgets.
Instead of interrupting hiring and slowing down our team’s ability to execute, we’re using a fractional hiring model. As we’ve scaled the workforce over the years, we’ve always tried to recruit key people as (usually part-time) contractors first and then convert them into full-time employees.