Over at Smoothspan, Bob posts about strategies to beat the coming recession (it’s hard to avoid coming to the conclusion that a recession is imminent – all things seem to point in that direction). It’s a great read and will be great news to the SaaS players out there who stand to benefit from any belt tightening. The 10 strategies are summarised below but check out the whole post if you have time.

1. Choosing #1, #2, or #3? Expect a flight to quality

The big boys with momentum and reserves are the safest bets in any recession period

2. Experimentation by Business Buyers will go on hold; Consumers will experiment more

Business will batten down the hatches, consumers will look for an escape (so long as it’s free)

3. It’s an opportunity to gain share, so be hyper-competitive, sell like you’ve never sold before, and don’t forget customer satisfaction

Focus on closing deals and making the best margin possible4. Capital will be harder to come by unless you already have it: another flight to quality

Less speculation, more blue chip and proven revenue model investing

5. Hiring will ease, but good people need never fear. Plus, it may get easier to judge the quality of your employer. Don’t forget to network!

Network to keep employment options open6. Exits will be less lucrative but possible: yet another flight to quality, and expect M&A more than IPO

The big boys pick up cash starved minnows for a song as their other options for capital raising disappear fast

7. The ad model will be tough unless you’re a proven quantity

Business belts tighten therefore ad revenue suffers

8. It’s not a bad time to start a company, but you should focus on bootstrapping and efficiency

Focus on dollar, cents and efficiencies9. Any recession benefits recurring revenue and less friction: think SaaS and other Services

Ease the friction for your customers and they’re more likely to stay as customers10. Watch out for overseas competition

Depending on whether the recesssion is localised or global

Ben Kepes

Ben Kepes is a technology evangelist, an investor, a commentator and a business adviser. Ben covers the convergence of technology, mobile, ubiquity and agility, all enabled by the Cloud. His areas of interest extend to enterprise software, software integration, financial/accounting software, platforms and infrastructure as well as articulating technology simply for everyday users.

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