Tag: Downturn

4 Tips For Launching a B2B Company in a Downturn

Starting a business is a challenge even in favorable market conditions, and during an economic downturn it requires extra work. Businesses tend to cut their budgets in trying times, and with it, the likelihood of establishing new partnerships with business-to-business (B2B) software or service providers. That said, some of the most successful B2B companies were launched during crises including Slack, Zoom, and Square. 



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Unlike business-to-consumer (B2C) customers, who won’t buy anything that isn’t tangible, B2B ventures can pitch products and services that don’t necessarily exist yet, and make good headway with clients. Research from McKinsey shows that, rather than waiting for an economic recovery, B2B companies that act swiftly to capture markets in a crisis are more likely to thrive.

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The ability to persuade customers on their future potential is what gives B2B startups more agility to gain momentum despite harsh conditions. Drawing

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Weekly High Frequency Indicators: First – Ambiguous – Evidence Of Consumer Spending Downturn

Purpose

I look at the high frequency weekly indicators because while they can be very noisy, they provide a good nowcast of the economy and will telegraph the maintenance or change in the economy well before monthly or quarterly data is available. They are also an excellent way to “mark your beliefs to market.” In general, I go in order of long-leading indicators, then short-leading indicators, then coincident indicators.

A Note on Methodology

Data is presented in a “just the facts, ma’am” format with a minimum of commentary so that bias is minimized.

Where relevant, I include 12-month highs and lows in the data in parentheses to the right. All data taken from St. Louis FRED unless otherwise linked.

A few items (e.g., Financial Conditions indexes, regional Fed indexes, stock prices, the yield curve) have their own metrics based on long-term studies of their behavior.

Where data is seasonally adjusted,

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