Micro startup is the new black in the era of high inflation
Small but strong
The stereotype for "Smallness" refers to "weakness" in general but I do think in the current macro situation, smallness isn't a weakness any more but all about efficiency to bring more economic margin to startup operation. Why is this critical? because operational costs for every startup keep rising due to high inflation and geo-political conflicts. This means consumer pocket getting loosing their cash. And also the purchasing power is getting weaker than previous the era of lower Fed interest rate. Making small and efficient startups will be a key strategy for now. Here are some questions for myself
- Do we need massive VC investments?
- Do we need a massive human workforce rather than an AI workforce?
- Do we need to have office space rather than a fully remote workplace?
These are all the questions that are related to the operational cost of running your startup. If i were startup CEO, I would go with the direction of "small but efficient". This will make the longer runway for your startup. Startup is all about exponential growth, and survival with using efficient operational resources. If you fail to manage operational resources, your startup will fail. No matter how your technology is cool or not. It doesn't matter. The thing that matters is to make your startup profitable in the era of high inflation. That is the only thing.