Yesterday the market was positive & people are excited. Today, it might be negative. Instead of reacting to the market, let's pause & reflect.
We discuss financial markets along with the web3 eco-system because both are closely linked.
Thread on traditional finance & Web 3
This becomes apparent when you start treating web3 communities or NFT projects as Startups.
Once this is established, the next step is to understand the interplay of web2 startups and Bull/Bear-driven liquidity cycle
When the bull market is in full swing, there are plenty of opportunities for startups to get funding and make a big name for themselves.
But what about when the market turns?
What does it take for a startup to succeed during a bear market?
Startup success is all about timing, and knowing how to time your project right is one of the best ways to ensure that your startup will be successful no matter what's going on in the economy.
In fact, it's not just about knowing when to launch your product—it's also about knowing when to pull back.
When you're working with funds that are tied up in projects that aren't yet profitable, it can be tempting to continue pushing forward until you reach profitability… or until you run out of money.
But as we've learned from watching startups fail, this kind of blind optimism is often what leads companies down the road toward failure.
If you want your business to succeed in a bear market and beyond, then here are some tips:
1) Know when it's time to pull back on your spending and focus on cash flow management.
There may be times when it seems like there simply isn't enough money coming in (or going out) at any given moment, but you always have a choice to either keep spending or stop.
The key is knowing when it's time to stop spending, which can be difficult for many entrepreneurs who are used to living on the edge.
2) Look for ways to cut costs and make more money with less expense.
One of the most common mistakes that startups make is continuing to spend money on things that don't actually move the needle—and this applies not only to advertising but also office space, employees, and anything else that doesn't directly contribute to revenue.
3) Get help.
If you're overwhelmed by the stress of trying to manage your business then it might be time to consider hiring a web 3 strategy consultant who can help set the vision and strategy that can be executed during the down months, so that the startup is ready for the next round of liq.
One who doesn't charge you an arm and a leg, rather invests in the business through sweat equity and long-term partnership so that the long-term incentives are aligned
