The economic climate of the past 18-24 months could best be characterized as a storm: demand dramatically outpacing supply resulting in double digit inflation, a stubborn labor market that’s coined its own name (“The Great Resignation”) and markets awash in low-cost capital. It goes without saying that most company leaders faced a steep learning curve as they operated their businesses in this challenging, but oftentimes rewarding, environment.
The next 18-24 months may very well prove to deliver a storm of a different kind, characterized by slowing growth, a more limited supply of capital and continued dislocation in the labor market.
Our experience – working with growth stage companies over nearly four decades – has shown us that market turbulence can provide opportunity for some companies while creating headwinds for others. Regardless, leaders need to work to avoid the confusion, disorder or anxiety borne from turbulence and operate from a position of strength. But how do you do this? We encourage leaders across our portfolio companies to focus on six key areas: