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Arcane

Stealth • 7m

Startup Simulations #1 Your startup, let's call it "Freshfoods," has been delivering organic, locally-sourced meal kits for the past year. You've gained a loyal customer base and have been steadily growing. However, things have taken a turn. Your main funding source, a venture capitalist firm, has just informed you they are freezing all new investments due to unforeseen market fluctuations. This funding freeze throws a wrench into your plans. You were counting on that capital to expand your delivery area, hire additional staff, and implement a much-needed marketing campaign. Without it, your growth will stall and you might even struggle to maintain current operations. You've called an emergency team meeting with your core team. The pressure is on to brainstorm creative solutions to overcome this hurdle. How would you find a way out ?

18 replies13 likes

Replies (18)

Ishan Singh

Stealth • 7m

Just sell the company to a big company who is already doing this business and yaa convince them to give you some shares in the company like 15 or 20 percent and with that money go do something else😬

1 replies1 like

Aryan Raj

Stealth • 7m

That's why Profitability and keeping cash flow is necessary in business specially in those with longer business cycle.... For solution these steps can be followed - 1. Cutting all unnecessary expenses 2. Asking for some funds to sustain current operations from family or friends (it's not bad in crucial times) 3. Focusing more on growing organic marketing , that really helps a lot 4. Suspending rapid expansion and managing current one to make it profitable....

2 replies5 likes

SHIV DIXIT

Stealth • 7m

That's why I always prefer emergency funds and my business always have 6-7 months runways so that situation never happened in my leadership but if happens then I will definitely prefer my plan b for tackle this because I always prefer to check all the possibilities and situation. Step 1 - cut 50% salary Step 2 - cut offers Step 3 - sell some family assets Step 4 - move towards profitability Step 5 - slow down some expanding plans Step 6 - start market analysis and Competition strategies Anyday I become profitable if that situation happens with me

1 replies3 likes

Anonymous 2

Stealth • 7m

Step 1 is almost certainly figuring out extensions of your cash runway - could you take on short-term debt, bring in a new investor for a smaller round

1 replies1 like

Anonymous 1

Stealth • 7m

If i was the founder or in the operations team, I’d basically convince the team to bring a social angle to our business so that, it can go viral with less monetary push. Collaborate with local vegetable sellers, get them into the distribution cycle, market it. I’m sure, with the traction, gained from this, if executed well, logistics wise, there a good chance to get funded.

1 replies3 likes

LIKHITH

Stealth • 7m

Apply for a loan to manage this situation. Secondly, reduce the expense and will delay all the expanding plans.

1 replies1 like

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